06:16 AM EDT, 07/31/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries sell off during the the Federal Reserve press conference on Wednesday with curve bear-flattening; turn better bid in Asia. Equity futures pare losses led by tech, Asian stocks are mixed with China down and Japan up. USD strengthens with EUR falling to around $1.143. Brent remains above $73/barrel.

Fed: Federal Reserve keeps rates unchanged at 4.25%-4.5%, while governors Christopher Waller and Michelle Bowman dissented in favor of a cut. Chair Jerome the Powell stressed that tariffs are pushing up some goods prices and Fed is committed to making sure that one-time increases don't lead to more persistent inflation. Inflation is further from goal than employment.

Trade: President Donald Trump says India's tariffs are too high. The U.S. and South Korea reach trade agreement including 15% tariffs. Commerce Secretary Howard Lutnick says the U.S. made a trade deal with Thailand and Cambodia. Trump delays implementation of 50% tariff on Brazil by seven days and expects "very fair deal with China" after this week's trade talks concluded. Trump says Canada's stance on Palestine makes it hard to make a trade deal.

==ASIA:

Japan: The central bank (BoJ) keeps rates unchanged at 0.5% and raises inflation outlook, especially for the short-term, due to higher food prices.

China: Manufacturing PMI drops 0.4pts to 49.3 (consensus 49.7), services component drops 0.4pts to 50.1 (consensus 50.2).