06:25 AM EDT, 04/29/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries (UST) are rangebound in Asia, stocks and e-minis gain, Japan is closed, yen (JPY) spikes after the breach of 160, Japan's top currency diplomat Masato Kanda says "no comment for now" when asked after a possible intervention. EUR rebounds above $1.073. Brent slips below $89/barrel.

US: New York Fed gross domestic product (GDP) Nowcast for Q2 rises marginally to 2.74%, Atlanta Fed's initial GDPNow estimate is at 3.88%.

CFTC: Hedge funds extend record net short position in front-end futures.

US banks: Regulator shuts down Republic First Bank, the Federal Deposit Insurance Corp (FDIC) sells assets to Fulton Bank.

== EUROPE:

Germany: Prime Minister Olaf Scholz supports reform of debt brake "in the future." Finance Minister Christian Lindner says economic turnaround is needed as weakness has consequences for security and geopolitics.

Italy plans to invest 10 billion euros in semiconductor industry throughout this year, Industry Minister Adolfo Urso says. The government is pushing G7 for a more ambitious coal phase-out by 2025.

France: Moody's leaves France (Aa2/stable) unchanged in periodic review, says it was "unlikely" that France will hit its deficit target of 2.9% in 2027. "Progress in sustainably reducing the budget deficit and government debt is limited". Fitch affirms France at AA-/stable, lists high debt and "poor record of fiscal consolidation" as key rating weakness.

Other ratings: S&P reviewed Belgium (AA/stable) and Finland (AA+/stable) without changes, affirms Slovakia at A+/stable, NRW at AA/stable and raises outlook for Aragon (BBB+) to positive. DBRS confirms Italy at BBB (high)/stable and EU at AAA/stable. Scope downgrades Austria to AA+/stable from AAA/negative, affirms NRW at AAA/stable.

Russia threatens the West with a "severe" response if frozen assets are confiscated.

== ASIA:

China: Industrial profits fell 3.5% y/y in March, but are up 4.3% y/y in Q1. Tje central bank (PBoC) calls for financial sector support from other government agencies in trade-in policy.