Commerzbank on Overnight News

06:37 AM EDT, 10/17/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: Concerns on regional United States banks trigger risk-off, U.S. Treasuries expand gains in Asia. U.S. equities stabilize into close, drift lower in Asia, regional indexes with losses. US dollar (USD) drops, gold with new high, oil little changed overnight.

Fed: Federal Reserve Governor Christopher Waller calls for careful cuts in 25bps increments, Governor Stephen Miran wants bigger steps. Minneapolis Fed President Neel Kashkari says the tariff impact is taking longer than he expected.

Fed: Currency reserves held in custody at the Federal Reserve fell to the lowest level since 2012.

U.S.: White House plans to extend tariff relief for U.S. carmakers from two to five years.

U.S. Banks: Zions Bancorp and Western Alliance Bancorp both drop more than 10% after disclosing problems with fraudulent loans to funds that invest in distressed commercial mortgages.

U.S./Russia: After Thursday's call, President Donald Trump and Russian President Vladimir Putin may follow up "high-level staff" meeting next week with personal meeting "within two weeks or so" in Budapest.

IMF sees "significant downside risks" to global growth due to renewed trade tensions between the U.S. and China.

==EUROPE:

ECB: President Chritistine Lagarde repeats the European Central Bank is in a "good place" and "well positioned to face future shocks" as risks to inflation and growth have become more balanced.

ECB: Governing Council (GC) member Philip Lane stresses data data-dependent meeting-by-meeting approach. GC member Olli Rehn stresses the importance of maintaining "optionality" in monetary policy. GC member Martin Kocher sees the ECB in a "good place," GC member Joachim Nagel is "rather comfortable" with rates. Edward Scicluna claims the price effects of U.S. tariffs are still unclear.

BoE: Bank of England policymaker Catherine Mann warns there is "very clear upside evidence of inflation being above target, staying sustained above target".

EU: European Commission proposes defense policy "roadmap" featuring flagship defence projects such as counter-drone systems and fortification of eastern border; published updated guidelines on import ban for fuel made from Russian oil.

==ASIA:

Japan: Central Bank governor Kazuo Ueda reiterates the Bank of Japan will adjust the degree of monetary easing if "confidence in hitting the outlook increases."

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