Commerzbank on Overnight News

06:32 AM EDT, 10/06/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasury yields rise across the board, led by long-end. 2y-30y Japanese government bond curve steepens by 15bps from both sides after Sanae Takaichi's election. Yen (JPY) weakens past 150, EUR slightly weaker around $1.173. Equity futures moderately higher, while the Nikkei is up almost 4%. Bitcoin surpasses $125,000. Brent opens higher, trades above $65.4/barrel.

Fed: Federal Reserve Bank of Dallas President Lorie Logan says "we're furthest away on the inflation side" of policy objectives. Federal Reserve Vice Chair Philip Jefferson is concerned about a softening labor market while inflation remains above target. Governor Stephen Miran says he would adjust the inflation forecast if rents turned out materially higher.

U.S.: President Donald Trump says "we're ready to go back" on the shutdown.

Middle East: Israel reined in its offensive in Gaza after Hamas agreed to free all hostages while rest of the peace plan would be subject to negotiations.

OPEC+ is close to an agreement to add 137,000/day to output in November.

==EUROPE:

ECB: President Christine Lagarde says that the European Central Bank has "done a lot" on rates, is in "good place" (speech). Executive Board member Isabel Schnabel warns that financial markets may be underestimating risks (speech).

Germany: Economy ministry revises 2025 growth forecast up to 0.2% from 0.0% (Reuters sources).

The European Union is considering halting all Russian oil imports from 2026 and banning natural gas imports from 2027.

Ratings: Fitch upgrades Slovenia to A+/stable from A/positive. Moody's completes review of EU without rating decision.

Czech Republic: Andrej Babis wins parliamentary election.

==ASIA:

Japan: Ruling party elects Takaichi as leader, putting her on track to become prime minister.

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