05:47 AM EDT, 10/27/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries continue to weaken in Asia as stocks and e-minis rally with U.S. indexes hitting new record highs. The euro (EUR) remains rangebound around $1.163. Brent stabilzses above $66/barrel.

Trade: President Donald Trump believes he could reach "a comprehensive deal" with Chinese President Xi Jinping at the ASEAN summit. Trump strikes trade deals with some Southeast Asian countries, and says he may reduce Brazil tariffs and increase tariffs on Canada by 10% over Ontario's advertisement against U.S. tariffs. Treasury Secretary Scott Bessent sees China delaying rare earth regime by one year.

Fed: Trump says he will make a decision on the new Federal Reserve chair maybe by the end of this year.

U.S.: Scope downgrades US to AA- from AA and raises outlook to stable, due to sustained deterioration in public finances and weakening of governance standards. White House says there won't be a release of inflation data next month.

U.S. banks: Fed announces changes to stress tests, estimates capital requirements to fall by "negligible" 0.25%.

Argentina: President Javier Milei's Freedom Advances Party wins midterm parliamentary election.

==EUROPE:

ECB: European Central Bank Governing Council member Jose Luis Escriva says inflation is on target and the current level of rates is appropriate.

France: Socialist Party pitches for narrower version of its wealth tax proposal as possible compromise in budget debate. ECB GC member Francois Villeroy de Galhau says "it's absolutely necessary to get within 3% between now and 2029 and this means a maximum deficit of 4.8% next year."

Ratings: Moody's lowers outlook for France to negative and affirms Aa3. DBRS confirms EU at AAA/stable. Fitch affirms Lithuania at A/stable. Moody's affirms Belgian regions.

EC: The European Commission is working on a plan to end reliance on Chinese rare earth.

U.K.: Members of Prime Minister Keir Starmer's administration are arguing for him to break with past caution on Brexit and take the United Kingdom much closer to the European Union (Bloomberg).