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Commerzbank on Overnight News

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

Markets: United States Treasuries stay on the back foot after a soft three-year auction, slip further in Asia. Equities are slightly weaker. Brent stays supported above US$104/barrel. The US dollar (USD) rallies.

Tariffs: President Donald Trump says the U.S. needs more tariffs, asks the court to keep collecting tariffs during government's appeal.

Fed: Senate voted 49-44 for Kevin Warsh as Federal Reserve chair, final votes expected during the course of this week.

U.S.: President Trump wants to pause the gasoline tax, with inflation expected to surge on Tuesday. The plan for the executive order to suspend beef tariffs was delayed.

Iran war: President Trump says ceasefire is on "massive life support," calls Iran's proposal a "piece of garbage" that he "didn't even finish reading." The UAE has been secretly carrying out strikes on Iran (WSJ). Trump is "seriously" considering resuming combat operations (CNN).

==EUROPE:

U.K.: British Prime Minister Keir Starmer is losing the fight to stay in power, with cabinet allies joining calls for resignation, including Interior Minister Shabana Mahmood (Bloomberg sources).

==ASIA:

U.S./China: The White House confirms President Trump will meet President Xi Jinping on Thursday morning in Beijing to discuss Iran, aerospace, energy and agriculture. Delegation includes Elon Musk and Apple's Tim Cook. Trump vows to also discuss Taiwan and jailed media tycoon Jimmy Lai.

Japan says U.S. Treasury Secretary Scott Bessent offered "understanding" on yen (JPY) policy (FT). Bank of Japan minutes signal that rate hikes are "quite possible" starting next month.

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