Commerzbank on Overnight News

Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: Mixed United States Treasury (UST) moves in late New York , futures slip to new lows in Asia after Australian consumer price index (CPI) rises more than expected; equity futures and US dollar (USD) little changed, oil stabilizes.

Fed: Federal Reserve Governor Michelle Bowman sees upside risks to inflation and reiterates that she doesn't project any cuts this year. Federal Reserve Governor Lisa Cook says at some point it will be appropriate to reduce the level of policy restriction, timing of adjustment will depend on data.

== EUROPE:

ECB: European Central Bank Governing Council member Ollie Rehn deems market expectations of two more cuts in 2024 as "reasonable," terminal rate of 2.25%-2.5% as "fair," policy moves should be possible at every meeting.

ECB will set interim emission-reduction targets for its corporate portfolios using requirements from European Union climate benchmarks legislation as a guide; 'remedial actions' may be taken if climate goals are missed.

EU: Defense bonds are likely to be off the table. German-led push to shut down debate on joint borrowing is being helped by current turmoil in France (Bloomberg cites officials). Italian Prime Minister Giorgia Meloni will get to pick the European Commission Executive vice president in a deal assuring Ursula von der Leyen's second term as president (Bloomberg).

France: Far-right National Rally(NR) with 34.5% in Cluster17 poll; left-wing alliance New Popular Front (NPF) at 30%, President Emmanuel Macron's group at 19.5%. Ifop poll sees NR at 36%, NPF at 28.5%, Macron's group at 21%.