05:52 AM EDT, 03/24/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries slide on tariffs news, e-minis gain, Asian stocks are mixed. EUR remains rangebound. Brent hovers around $72/barrel.

Federal Reserve: Operating loss narrowed to $77.6 billion last year from $114.3 billion in 2023.

Tariffs: President Donald Trump says there will be flexibility on forthcoming April 2 tariffs and "flexibility is an important word." He prepares "Liberation Day" tariff announcement on April 2 which could be more focussed than initially planned, and without separate sectoral-specific tariffs. France wants the Europea Union to consider deploying its anti-coercion instrument against the U.S., in case of April 2 tariffs.

US: New Yord Fed gross domestic product Nowcast edges slightly up to 2.72% for Q1 and slips to 2.64% for Q2. Trump says joining Commonwealth nations "sounds good to me."

Ukraine: The US still hopes for a broad ceasefire agreement by Easter but recognizes that timeline may slip as Russia gives signals that it is in no hurry. China mulls participation in potential peacekeeping mission (Welt). The U.S. seeks to reopen the terms of the minerals deal (FT).

Canada: Prime Minister Mark Carney calls early parliamentary elections for April 28.

==EUROPE:

ECB: Some European Central Bank and supervisory officials are questioning whether they can still rely on the U.S. Federal Reserve to provide US dollar funding in times of market stress (Reuters sources).

Germany: Coalition negotiations are proving difficult in area of finance, Easter deadline is being questioned. President Frank-Walter Steinmeier signed the constitutional amendment.

EU: Italy's manufacturing sector could benefit from German defense spending, Industry Minister Adolfo Urso says (FT). The United Kingdom hopes for a timely defense pact with the European Union to fully access the EU's new 150 billion euros defense fund.

Turkey: Istanbul's mayor remains jailed over corruption probe.

Ratings: DBRS lowers outlook for France to negative, confirms AA (high); also confirms Finland at AA (high)/stable and

upgrades Cyprus to A (low)/positive from BBB (high)/positive.

==ASIA:

Japan: Governor Kazuo Uchida says the Bank of Japan will adjust the degree of policy easing if the economic outlook for achieving the price target is realized.

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