Commerzbank in its "European Sunrise" note of Wednesday highlighted:
Markets: United States Treasuries steady in Asia after yields rose into the New York close. Brent drops to US$78.3/barrel. U.S. equity futures and Nikkei are up, European futures a tad lower. The euro (EUR) remains steady around $1.161.
Iran war: 14-point memorandum of understanding draft states that the Strait of Hormuz should be reopened, Iran won't produce nuclear weapons, all sanctions lifted, US$300 billion development fund launched and a 60-day period to reach final agreement (Bloomberg). Some U.S. officials, including Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, doubt that Iran is willing to make meaningful nuclear concessions (Telegraph).
==EUROPE:
ECB: European Central Bank Governing Council member Gabriel Makhlouf warns that price pressure lingers even if the conflict ends.
France: The central bank (BdF) lowers 2026 growth forecast to 0.5%, from 0.9%, citing uncertainty from the war in Iran.
Germany: Prime Minister Friedrich Merz tells President Donald Trump that Germany is ready to contribute to the Hormuz mission.
Italy: BTP Italia Si orders amount to 2.2 billion euros on the second day, taking total orders to 5.4 billion euros.
==ASIA:
China: The central bank (PBoC) is working on a new policy framework with a focus on the overnight rate. A new repo facility will be created for foreign central banks to generate yuan (CNY) liquidity.