06:33 AM EDT, 09/29/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries recover. Asian stocks are mostly higher, except for Japan, in line with U.S. stock futures. DXY remains on the back foot, EUR rises above $1.1725. Brent stabilizes around $69.50/barrel. Gold hits a new record above $3,800/oz.

Fed: Federal Reserve Vice Chair for Supervision Michelle

Bowman prefers a gradual approach to rate changes and the smallest possible balance sheet and sees a neutral rate at the median estimate of 3%.

U.S.: President Donald Trump to meet Democrats congressional leaders on Tuesday ahead of the deadline to avoid a shutdown.

Tariffs: White House is set to honor a 15% tariff cap on pharmaceutical imports from the European Union and Japan. EU plans to double tariffs on United Kingdom steel imports to 50% and halve the quotas of the post-Brexit deal from January (Times). Trump mulls tariffs on international electronic devices based on the number of chips in each device (Reuters).

OPEC+ is set to approve another output hike by 137,000 barrels/day in November at next Sunday's meeting (Reuters).

==EUROPE:

ECB: Governing Council (GC) member Olaf Sleijpen says European politicians shouldn't rely on the European Central Bank's emergency instruments to solve their fiscal problems (FD). GC member Gabriel Makhlouf says ECB is "near the bottom" of its rate-cutting cycle (FT).

BoE: Policymaker Swati Dhingra says the Bank of England can afford to cut rates further, without hurting efforts to bring inflation back to target (Times).

France: Prime Minister Sebastien Lecornu offers minor adjustments to overall budget targets and rules out "austerity," with priority on reducing outlays, while spending on pensions and health would increase. Deficit should drop to 4.7% in 2026 (versus 4.6% set out by previous PM Francois Bayrou) from 5.4% in 2025.

Italy: League party wants domestic banks to contribute five billion euros to the 2026 budget.

Ratings: Spain upgraded by Moody's to A3/stable from Baa1/positive and by Fitch to A/stable from A-/positive. Scope affirms France at AA- and lowers outlook to negative. Scope also affirms Croatia at A- and raises outlook to positive. DBRS affirms Croatia at A/stable.

Moldova's ruling pro-EU party is set to win re-election.