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Commerzbank on Overnight News

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

Markets: United States Treasuries remain on the weak side, short-end yields continue to increase in Asia. Equities are mixed with U.S. equities closing near records, Nikkei up almost 3%, Hong Kong stocks down and U.S. futures flat. Brent increases to US$97/barrel. Japanese gvoernment bond curve bear-flattens.

Fed: New Federal Reserve Chair Kevn Warsh hires conservative policy analysts as advisers.

U.S.: Trump administration proposes new 10% tariffs on goods from the European Union and others, following an investigation into forced labor. China, India and others would face 12.5%.

Iran war: Iran attacks various targets in the Middle East, including Saudi Arabia and Dubai; the U.S. strikes Qeshm Island. Secretary of State Marco Rubio says Iran's supreme leader is communicating with the U.S. in writing and through intermediaries.

==EUROPE:

ECB: Euroepan Central Bank Governing Council (GC) member Pierre Wunsch says that the Iran peace deal wouldn't derail rate hike. GC member Olaf Sleijpen says that the ECB needs to determine whether the energy price surge drives broader price increases.

BoE: Bank of England Governor Andrew Bailey signals that Gilt sales could continue for another one or two years. Policymaker Megan Greene says hikes are likely needed as the Iran war drags on.

EU: A 20 billion euros investment plan for artificial intelligence faces delays over a lack of clarity about demand (Bloomberg sources).

==ASIA:

Japan approves 3.1 trillion yen stimulus package to cushion rising commodity costs.

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Vancouver's Home Sales Stabilized in May, No Sight of A Significant Boost, Says National Bank

Based on data from the Real Estate Board of Greater Vancouver (REBGV), National Bank of Canada's preliminary estimate is that seasonally adjusted home sales edged up 0.5% from April to May, the first increase in three months.Despite this stabilization, transactions continued to be very low on a historical basis and stood 32.7% below their historical average, noted the bank.While the marginal improvement in transactions in May remains good news, activity in Vancouver's real estate market doesn't appear to be showing any signs of a significant recovery, likely due to ongoing affordability issues, economic uncertainty and, more recently, geopolitical turmoil, stated National Bank.In addition, the labor market improvement the bank has seen in the region over the past year has recently been completely wiped out, with the unemployment rate jumping from 5.8% in February to 7.0% in April -- its highest level since June 2021.Should trade relations improve and the labor market stabilize, the potential boost in consumer confidence could stimulate activity in the residential market, added National Bank. However, the recent rise in fixed mortgage rates due to rising inflation could limit this recovery.

$$CXY