Commerzbank in its "European Sunrise" note of Friday highlighted:
Markets: United States Treasuries weaken in late New York session, continue to sell off in Asia. Japanese government bonds bear-steepen. Equity futures edge lower, led by Japan. Yen (JPY) slides to 158.5 versus the US dollar (USD). Brent rises back above US$107/barrel.
Fed: Federal Reserve Governor Michael Barr criticizes the proposal to shrink the balance sheet, calling it "wrong objective." Federal Reserve Bank of New York President John Williams doesn't think the Fed needs to change rates right now. Federal Reserve Governor Stephen Miran says he will resign once Kevin Warsh is sworn in as chair, or shortly before.
U.S.: Pentagon cancels plans to deploy 4,000 troops in Poland.
U.S./Iran: President Donald Trump says the U.S. doesn't need the Strait of Hormuz open at all. Trump says Chinese President Xi Jinping offered to help in negotiations with Iran and promised not to sell arms to Iran.
==EUROPE:
ECB: European Central Bank Governing Council member Yannis Stournaras says oil prices at current levels could cause a rate hike, while "we all hope to avoid that."
U.K.: Andy Burnham opens path to challenge British Prime Minister Keir Starmer for premiership. Wes Streeting resigned as health secretary, paving the way to run for prime minister.
BoE: Bank of England Chief Economist Huw Pill calls for "modest but prompt" increase in borrowing costs amid price pressures; warns of strong second round effects as Iran war persists.
==ASIA:
Japan: April producer price index rises 2.3% month over month, while consensus was 0.8%.