Commerzbank on the overnight news Commerzbank on Overnight News
06:54 AM EDT, 03/29/2022 (MT Newswires) -- Commerzbank in its "European Sunrise" note of early Tuesday highlighted:
Markets: United States Treasuries (UST) close little changed after 2two-year and five-year auctions, are under modest pressure again in Asia. US equities rally into New York close as oil softens. Asian equities are mixed, major foreign exchange (FX) crosses little changed.
US Senate passed a bill to aid the semiconductor industry. President Joe Biden's budget includes $1 trillion net deficit cuts in a 10-year outlook to $14.4 trillion.
==EUROPE:
Russia/Ukraine: Russia is no longer requesting Ukraine be "denazified" and is prepared to let Ukraine join the European Union, but officials play down chances for a breakthrough in Tuesday's talks. A draft ceasefire document doesn't contain a discussion of three of Russia's initial core demands (FT).
Russia will decide ruble (RUB) natural gas payment mechanism on Thursday, German Finance Minister Christian Lindner reiterates firms must resist the demand. A coupon payment on Russian Railways sterling (GBP) bond wasn't processed by paying agent Deutsche Bank since Friday. Kremlin spokesman says nuclear weapons would only be used if Russia was under threat of existence.
ESG: European Central Bank's (ECB) supervisor Andrea Enria says banks' balance sheet choices "about green and non-green assets will materially impact their bottom lines." Platform on Sustainable Finance wants to introduce a new "amber" category for gas and nuclear (FT).
Germany: Airbus chief says 100 billion euros military budget won't be enough, promotes own air defense system.
UK: Met police to issue at least 20 "partygate" penalties on Tuesday, not including British Prime Minister Boris Johnson.
== ASIA:
Japan: Finance Minister Shunichi Suzuki says the government needs to monitor closely the impact of a weaker yen (JPY) to check it isn't becoming negative. PM is working on a stimulus package to help consumers hurt by high inflation.