06:13 AM EDT, 04/10/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: Risk-on with Nasdaq rallying 12%, S&P up 9.5% in record volume after United States tariff pause announcement, e-minis remain close to the highs in Asia and Nikkei is up 8%. Bund future drops sharply on tariff pause, opens higher in Asia. Two-year US Treasuries rise some 30bps above 4% before consolidating, longer-tenors are better supported. Solid 10-year UST auction. EUR drops back below $1.10. Brent is up at $64.6/barrel.

Fed: Minutes for the March meeting state that inflation could be more persistent, stagflation risks are looming and tariffs are likely to increase inflation this year. Minneapolis Federal Reserve President Neel Kashkari says that "hurdle to cut rates remains high" and uncertainty about tariffs may lead to economic downturn. Federal Reserve Bank of Cleveland President Beth Hammack calls current monetary policy "modestly restrictive." Michelle Bowman says at the nomination hearing she will prioritize reforming supervision.

US: Atlanta Fed GDPNow rises to -2.42% from -2.85% for Q1. House delays vote on tax cuts and debt limit.

==EUROPE:

ECB: European Central Bank Governing Council member Francois Villeroy de Galhau calls U.S. President Donald Trump's decision on tariffs "a return to economic reason," he doesn't expect an increase in inflation in Europe.

France: Finance Minister Eric Lombard confirms plans for 5.4% budget deficit.

Germany: SPD members to vote on coalition treaty by April 30. Incoming Prime Minister Friedrich Merz promises that the corporate tax cuts are independent of financing questions.

Spain: PM Pedro Sanchez calls U.S. tariffs unjust and harmful, while a pause can lead to negotiations.

==ASIA:

China: CPI falls to -0.1% year over year in March, while the consensus was 0% and the producer price index drops to -2.5%, while the consensus was -2.3%.