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Commerzbank on Overnight News

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

Markets: United States Treasuries weaken into the New York close, sideways in Asia. E-minis pare gains amid weaker Asian equities. The euro (EUR) is little changed. Brent recovers but remains below US$96/barrel.

Fed: San Francisco Federal Reserve President Mary Daly says policy is in a good place, but uncertainty lies ahead, thinks forward guidance could be misleading now. Kansas City Fed President Jeffrey Schmid says the economy is "by and large" in a good place, calls inflation the biggest risk, adds that the key question is how patient the Fed should remain on rates.

U.S.: Treasury Secretary Scott Bessent says any further Russia oil waivers would be country-specific, says existing waiver kept overall energy prices lower. The U.S. administration is tougher on Russia than "anyone."

Iran war: President Donald Trump says the U.S. has wiped out almost all of Iran's leadership and doesn't need any European help in the Strait of Hormuz. Reiterates that talks are going well and that war would be restarted if U.S. troops are killed. The core part of any deal is no nuclear weapon for Iran and the reopening of Hormuz.

Middle East: Hezbollah rejects ceasefire with Israel, says ceasefire must include all of Lebanon.

Russia-Ukraine war: Ukrainian President Volodymyr Zelenskiy proposes meeting with Russian President Vladimir Putin to end the war in an open letter.

==EUROPE:

BoE: Bank of England Governor Andrew Bailey says markets have been orderly though stretched at times, warns debt-market leverage raises questions on vulnerability.

U.K.: Greater Manchester Mayor and Labour candidate Andy Burnham confirms plans to challenge Prime Minister Keir Starmer for premiership in BBC town hall.

==ASIA:

Japan: Finance Minister Satsuki Katayama says the country can respond to foreign exchange as needed at any time; "bold actions" permitted under the U.S.-Japan currency statement.

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