Commerzbank in its "European Sunrise" note of Friday highlighted:
Markets: United States Treasuries and equities jump, Brent drops below US$90/barrel after President Donald Trump cancels attacks on Iran. USTs consolidate overnight, equities remain supported with Nikkei up over 3%. The US dollar (USD) falls, then rangebound in Asia.
Iran war: President Trump insists deal is close after cancelling "very hard" strikes for Thursday night vowed hours before, deal could be signed over the weekend. Fars reports the likelihood of Tehran approval is "relatively high," ISNA reports Iran hasn't yet reached a final conclusion. Axios affirms the Memorandum of Understanding would extend the ceasefire for 60 days, including in Lebanon, includes a framework for Iran's uranium, and would incorporate immediate Strait of Hormuz reopening without tolls.
SpaceX raises US$75 billion. IPO price of US$135 per share values the firm at $1.77 trillion.
==EUROPE:
ECB sources: European Central Bank Governing Council (GC) members aren't ruling out a second hike as soon as July (Bloomberg). Policymakers see rates on hold in July as the more likely scenario, while oil above US$100/barrel could trigger hike, and note that projections embed two more rate hikes (Reuters).
ECB is "ready to respond again," the next meeting is in July, GC member Joachim Nagel says. GC member Primoz Dolenc thinks hike enables the ECB to "do the thinking of the broader environment in the next meetings." The International Monetary Fund says the ECB may need to keep hiking. Italy's Deputy Prime Minister Antonio Tajani says rate hike "doesn't help anyone."
EU to discuss cutting long-term budget proposal by more than 2%.