06:26 AM EST, 02/07/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries softer overnight Thursday, e-minis gain after U.S. equities close at session highs. USD and oil recover in Asia.

Fed: Dallas Federal Reserve Bank President Lorie Logan is skeptical that more cuts are necessary. Chicago Federal Reserve President Austan Goolsbee sees uncertainty leading to fewer cuts. Federal Reserve Governor Christopher Waller says stablecoins could be a "net addition" to the U.S. payments system, thinks they could back USD's reserve status.

U.S.: Treasury Secretary Scott Bessent says he won't comment on monetary policy, is sure Fe Chair Jerome Powell will do "the right thing." Says "strong dollar" policy remains intact under President Donald Trump. Doesn't plan to alter government's debt issuance but wants recalibration of UST borrowing committee TBAC. Is "completely aligned" with DOGE's efficiency drive.

U.S. Tariffs: Bank of Canada's Governor Tiff Macklem says tariff threats are "already affecting business and household confidence, particularly in Canada and Mexico." Introduction would "reduce long-run prosperity," sees "harder choices" for central banks as they can't "lean against weaker output and higher inflation at the same time."

==EUROPE:

ECB: European Central Bank Governing Council member Boris Vujcic says deglobalization would weigh on growth and increase inflation, warns impact of trade fragmentation would not be "one off."

German election: CDU/CSU (31%) up 1pp in the latest ARD-Deutschlandtrend, AfD up 1pp to 21%, Greens lose 1pp to 14%, SPD (15%), FDP (4%), Linke (5%) and BSW (4%) unchanged. CDU leader Friedrich Merz overtakes Greens leader Robert Habeck as the most popular politician. Concern about not getting a stable government jumps to 69%.

U.K.: Bank of England Governor Andrew Bailey says markets shouldn't "put too much weight on the voting," flags the importance of minutes, states vote split isn't a communication tool (Bloomberg TV).

==ASIA:

Japan: Prime Minister Shigeru Ishiba will meet Trump on Friday. The International Monetary Fund says Japan must fix its fiscal path immediately given the risks of natural disasters and rising social security costs.