-- Commerzbank in its "European Sunrise" note of Tuesday highlighted:
Markets: United States Treasuries stabilize in late New York, sideways in Asia. U.S. equities close lower, e-minis recover, Asia is mixed. Brent slightly lower after rising above US$114/barrel overnight. The US dollar (USD) trades supported.
Fed: Federal Reserve Bank of New York President John Williams says Fed needs to cut rates "at some point [...] to reflect the fact that inflation is lower." President Donald Trump says interest rates are too high.
U.S. Treasury Q2 net borrowing estimate was revised up by US$79 billion to US$189 billion. U.S. Treasury to start tariff refunds next Tuesday.
Iran war: President Trump says war can go on for another two to three weeks, "time is not of the essence" in making a deal. Iran and the U.S. exchanged fire. Two Navy destroyers transited the Strait of Hormuz (CBS). Iran's foreign ministry dismissed "Project Freedom" as "Project Deadlock." Several commercial boats are said to be on fire.
==EUROPE:
ECB: European Central Bank Governing Council member Joachim Nagel says "if the inflation outlook does not improve markedly" in June projections, "this would argue for an interest-rate hike." ECB has proven that it "acts decisively when necessary."
EU: European Commission Vice President Valdis Dombrovskis says "Europe is facing a stagflationary shock." The European Union is talking with Anthropic to get banks tested for Mythos vulnerabilities.
==ASIA:
Japan "will take bold actions against speculative FX moves" (Finance Minister Satsuki Katayama).
Australia: The central bank (RBA) raises cash rate by 25bps to 4.35% as expected.