Commerzbank in its "European Sunrise" note of Friday highlighted:
Markets: United States Treasuries stabilize in late New York trading, futures resume drop in Asia. Nikkei softer, e-minis weaker. Brent jumps back toward US$80/barrel, stable in Asia, while the US dollar strengthens.
Trade: U.S. starts new tariff probe on Germany over "persistent underpayment for innovative pharmaceutical products." Japan plans tariffs on steel products from China and Taiwan.
Iran war: President Donald Trump says he believes the memorandum of understanding (MoU) with Iran is "probably unconditional surrender", sees "no limits" to his power (Axios). Vice President JD Vance says the 60-day clock has started, delays trip to Switzerland and believes technical talks will begin at some point this weekend. Iran's Supreme Leader Ayatollah Mojtaba Khamenei tweets that President Trump pushed for the MoU "out of desperation."
Oil: Vice President Vance says 12.5 million barrels of oil passed the Strait of Hormuz Wednesday night.
==EUROPE:
ECB: European Central Bank Governing Council member Jose Luis Escriva warns of second-round effects, sees jump in energy prices already spread through the economy.
U.K.: Manchester Major Andy Burnham wins a United Kingdom parliamentary seat as a Labour candidate and will now be able to challenge Prime Minister Keir Starmer in a leadership contest.
EU Summit: The European Union wants to address "global macroeconomic imbalances" via "unity and dialogue with our main economic partners." The statement doesn't mention China. German Prime Minister Friedrich Merz demands that the EU "stop naivety toward the long-term ambitions of China," Spain opposes any measures against a "potential ally." European Council President Antonio Costa defends the back channel to Russian President Vladimir Putin.
EU banks: European Commission draft could give banks capital relief on loans to unrated companies and provide more freedom for capital flows within the bloc.
==ASIA:
Japan: May's consumer price indices in line with expectations. Finance Minister Satsuki Katayama warns the government could take "bold action" to defend the yen. Bank of Japan Deputy Governor Ryozo Himino sees risk of inflation accelerating beyond the 2% target.