06:16 AM EDT, 10/08/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: United States Treasury's rally stalls in late New York session, yields flat in Asia, OAT future slightly underperforms. E-minis start to recover after Tuesday's drop. EUR weakens below $1.162. Brent increases to almost $66/barrel. Gold reaches another record high above $4,000 per ounce.

Fed: Minneapolis Fed President Neel Kashkari warns that drastic rate cuts would lead to "burst of high inflation," adding that some data are sending "stagflationary signals."

Fed: Consumer inflation expectations at one-year horizon increase to 3.38% from 3.2%.

U.S.: Trump administration says furloughed federal workers arn't entitled to back pay after government shutdown.

==EUROPE:

France: Outgoing Prime Minister Sebastien Lecornu mulls suspending pension reform, says without LR, there will be a left-wing prime minister or dissolution. He will meet Socialists, Greens and Communists on Wednesday before informing President Emmanuel Macron.

ECB: European Central Bank President Christine Lagarde wants to "strengthen the foundations of the euro" to make it more resilient and strong. Governing Council (GC) member Joachim Nagel expects inflation around 2% in the coming years, thinks monetary policy stance is "in the right way forward." GC member Olli Rehn says downward inflation risk is in sight over the coming years.

Bundesbank: Nagel is in favor of joint EU debt for common defense spending, calls for speeding up reforms in Germany.

Germany: Stability council says that the debt/gross domestic product ratio will rise to 80% by 2029 due to defense and infrastructure spending.

EU: Patience with Belgium over Russian asset deal is wearing thin (FT).

Trade: European Commission proposes 50% tariffs on steel imports above a higher quota. The United Kingdom consequently explores stronger trade measures according to the industry minister.

==ASIA:

New Zealand: The central bank (RBNZ) somewhat unexpectedly lowered cash rate to 2.5% from 3% amid a struggling economy.