06:58 AM EDT, 10/16/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries better supported in late New York session, unchanged in Asia. E-minis partly recover late Wednesday's drop. EUR increases, trades close to $1.166. Brent mostly unchanged, gold at new record.

Fed: Beige Book reports that tariffs are pushing inflation higher, while economic activity and employment changed little compared with the previous report.

Fed: Federal Reserve Governor Stephen Miran doesn't think that larger than 50bps cuts are necessary, while trade uncertainty makes rate cuts more urgent. Federal Reserve Governor Christopher Waller says AI will boost gross domestic product.

U.S.: Judge temporarily blocks government from firing federal employees during shutdown.

Trade: President Donald Trump says that the U.S./China are in a trade war right now, while Treasury Secretary Scott Bessent floats the idea of pausing import duties if China halts rare earth controls. Trump says India has agreed to stop buying Russian oil.

==EUROPE:

ECB: European Central Bank Governing Council (GC) member Francois Villeroy de Galhau reiterates that a rate cut is more likely than a rate hike. GC member Joachim Nagel sees no reason to change rates. GC member Madis Muller warns that Chinese export controls on rare earths could cause inflation in the eurozone.

France: Six Socialists announced they will vote in favor of the censure against party instructions. LFI motion still expected to be short about 20 votes (Le Monde). Prime Minister Sebastien Lecornu's budget compromise sparks backlash among business leaders (FT).

U.K.: United Kingdom Finance Minister Rachel Reeves plans to raise taxes on the wealthy in the upcoming budget as IFS warns that additional 40 billion pounds are needed next year.

==ASIA:

Japan: Coalition talks between Ishin and LDP have been agreed on, putting Sanae Takaichi on track to become prime mnister.

Japan: Central bank board member Naoki Tamura wants to lift rates closer to neutral. IMF urges BoJ to move "very gradually" with rate hikes.