06:28 AM EDT, 03/16/2026 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries were modestly weaker in Asia. Brent opened above US$106/barrel, then fell back and consolidated under $105/barrel. Asian stocks were mostly weaker, e-minis recovered. The euro (EUR) hovered around $1.144.

Trade: U.S. and Chinese officials are exploring a trade deal during talks in Paris, in preparation for a meeting between President Donald Trump and President Xi Jinping later this month.

Iran: President Trump says the U.S. "obliterated" military sites on Kharg Island. Iran says there is no damage to oil facilities. Iran threatens to attack UAE infrastructure because the US military uses it for attacks, calls ports "legitimate targets." Supreme Leader Mojtaba Khamenei is reportedly receiving treatment at a hospital in Moscow.

Strait of Hormuz: President Trump called on allies, as well as China, to send warships to help commercial vessels sail through the Strait of Hormuz. He warned NATO faces "a very bad future" and floated the idea of delaying the Xi summit if there is no help on Hormuz (FT). Islamic Revolutionary Guard Corps (IRGC) commander said the waterway isn't closed, but under Iranian control.

==EUROPE:

European Union extended Russia sanctions after a last-minute compromise with Slovakia and Hungary over the status of two oligarchs.

Ratings: Fitch affirmed Italy at BBB+/stable and Spain at A/stable. S&P upgraded Croatia to A from A-, changed the outlook to stable from positive. DBRS confirmed Ireland at AA/stable and Cyprus at A/stable.

France: Marine Le Pen's far-right RN made gains in the first round of municipal elections.

==ASIA:

China: Industrial production rose 6.3% year over year in January/February and retail sales 2.8%, both better than expected.

Japan: Industry Minister Ryosei Akazawa urged Asian nations to diversify energy supply sources amid Middle East volatility. Finance Minister Satsuki Katayama said she is prepared to take "bold steps" on foreign exchange as needed.