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Commerzbank on Overnight News

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

Markets: United States Treasuries open lower in Asia as Brent oil surges to US$105.7/barrel on President Donald Trump's rejection of Iran proposal. Bund future drops some 30 ticks. Most equity futures decline. The euro (EUR) drops to $1.175.

Fed: Chicago Federal Reserve Bank President Austan Goolsbee says inflation isn't only coming from energy price shock; all interest rate options are on the table. Federal Reserve Vice Chair for Supervision Michelle Bowman says the Fed will introduce new regulatory reporting rules to provide more transparency regarding private credit.

U.S. imposes sanctions on Chinese companies for allegedly helping Iran.

Iran war: Iran offers to transfer some of its uranium to a third country, but refuses to dismantle nuclear facilities (WSJ). Iran refutes these reports. President Trump rejects Iranian offer as "totally unacceptable."

Russia-Ukraine war: Russian President Vladimir Putin says war may be "coming to an end."

==EUROPE:

ECB: President Christine Lagarde says more data is needed to judge the inflation impact of Iran war, adding that the European Central Bank is "torn between the risk of reacting too quickly or the risk of reacting too late." Governing Council (GC) member Nagel says the ECB is "highly vigilant" to rising inflation risk. GC member Luis de Guindos urges "prudence," thinks the ECB has to "wait before deciding on the next interest rate move."

Ratings: Fitch affirms Greece at BBB/stable, Cyprus A-/positive, DBRS affirms Germany at AAA/stable, affirms Poland at A/negative. S&P affirms Poland at A-/stable.

==ASIA:

China: The consumer price index rises 0.2pts in April to 1.2%, while the consensus was 0.9%. Core CPI rises 0.1pts to 1.2%.

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CIBC Says "Weak" Labor Market in April Strengthens View Central Bank to Stay on Hold With Rates for Rest of Year

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