06:20 AM EST, 11/25/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries jump on Scott Bessent's nomination as US Treasury Secretary, Asian stocks and e-minis gap higher and stay supported. DXY falls with EUR recovering to $1.0480. Oil declines.

Fed: The US government's debt load is now seen as the biggest risk to financial stability (survey in Stability Report). Federal Reserve says the upcoming framework review will cover FOMC's statement on longer-run goals and monetary policy strategy, as well as communication. A 2% inflation goal won't be a focus. Discussions will begin at the January 2025 meeting (statement).

US: Incoming President Donald Trump nominates Bessent as Treasury Secretary, who is considered a fiscal hawk. Bessent says his policy priority will be to deliver on Trump's various tax-cut pledges, and he advises Trump to pursue "3-3-3" economic policy including cutting the budget deficit to 3% by 2028, 3% GDP growth through deregulation and producing an extra three million barrels/day of oil. (WSJ).

CFTC: Hedge Funds partly covered record net shorts in two- and five-year UST futures.

COP29 agrees on a new United Nations-backed global carbon crediting mechanism.

Geopolitics: Israel and Hezbollah are close to a truce deal, Israel's ambassador to the US says.

==EUROPE:

ECB: Euroepan Central Bank Chief Economist Philip Lane thinks restrictive monetary policy will no longer be necessary next year, warns that inflation could fall below target. Governing Council (GC) member Francois Villeroy de Galhau says decisions at the ECB are independent of those of the Federal Reserve, "with the fall in inflation, we will be able to continue to lower rates." GC member Martins Kazaks says the ECB must cut rates next month on the poor economy.

Tariffs: The European Union and China are close to an electric vehicle agreement without tariffs where China commits to sell EVs with a price floor (Reuters).

Austria: Far-right Freedom Party wins regional election in Styria for the first time.

Ratings: Moody's completes the review of Italy without a rating statement, upgrades Cyprus by two notches to A3/stable from Baa2/positive on "material improvement in fiscal and debt metrics", and affirms Malta at A2/stable. Fitch affirms Greece at BBB-/stable and Luxembourg at AAA/stable. Scope upgrades Portugal to A/stable from A-/positive.

Italy: Unicredit bank launches takeover bid for local rival Banco BPM.