06:35 AM EDT, 08/20/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: United States Treasuries weaken in late New York session, move sideways in Asia. E-minis continue to weaken after SPX closed lower in tech selloff, Asian equities mostly in the red. EUR hovers around $1.163, Brent at $66/barrel.

Fed: Fed Vice Chair for Supervision Michelle Bowman says banks and regulators must embrace new technologies like AI and crypto or risk becoming less relevant for the overall economy. President Donald Trump says Federal Reserve Chair Jerome Powell is hurting the housing industry, stating that "every sign is pointing to a major cut."

U.S.: Treasury Secretary Scott Bessent has signalled to Wall Street that he expects stablecoins to become a key source of demand for U.S. government bonds. Discussions with Tether and Circle to inform the decision to increase T-bills funding (FT).

Russia-Ukraine war: Trump thinks "we have a good shot" at stopping the war, says it's better if Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin meet without him. The White House is considering Budapest as potential meeting place (Politico). Trump called Prime Minister Viktor Orban about Ukraine's European Union membership. European officials mull sending troops as part of a peace agreement, as 10 countries would be ready to deploy forces (Bloomberg sources). European Council President Antonio Costa says EU membership process must advance.

==ASIA:

China: U.S. Treasury Secretary Bessent says the current tariff status quo is working "pretty well." The Trump administration will step up scrutiny of materials imports, including steel and lithium, to enforce a ban on goods made in Xinjiang.

Japan: Trade balance unexpectedly turns into a deficit in July after exports decline the most in four years.

New Zealand: The central bank (RBNZ) cuts rates by 25bp to 3%, as expected.