Commerzbank on Overnight News

06:33 AM EST, 12/18/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasury yields decline in late New York session and open lower in Asia. U.S. equities extend losses into the NY close and equity futures edge slightly lower, led by Japan. Brent falls back toward $60.1/barrel. The euro (EUR) is steady around $1.1744.

Fed: Atlanta Federal Reserve President Raphael Bostic says inflation is more worrying than jobs, while it's a close call. He adds that Fed policy won't be helpful for structural job changes.

Fed: Treasury Secretary Scott Bessent says concerns about White House economic advisor Kevin Hassett's qualifications as the possible next Federal Reserve chair are "absurd." President Donald Trump says he will announce the next Fed chair in the new year, and predicts that he will lower rates "by a lot."

U.S.: Trump plans to award 1.45 million military service members $1,776 payments.

Russia-Ukraine war: The U.S. warns the European Union against giving frozen Russian assets worth 210 billion euros to Ukraine. Belgium is demanding "unlimited" guarantees in scope and duration (FT). EU wants "Buy European" rule on potential loan for Ukraine backed by Russian assets. The U.S. and Russia will hold talks this weekend.

Trade: Brazilian President Luiz Inacio Lula da Silva wants to sign the EU-Mercosur deal now or threatened to walk away otherwise, after Italy and France asked for a delay.

==EUROPE:

ECB: The European Central Bank proposes extending Frank Elderson's term as vice chair of bank supervision until December 2028.

Germany: The government will launch the "Germany fund" which should attract up to 130 billion euros in private capital to be invested in infrastructure and defense projects. The fund will be led by KfW and provided with seed capital of 30 billion euros of public money and loan guarantees (FT). The official announcement is scheduled for Thursday.

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