06:19 AM EST, 02/14/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: 30-year United States Treasuries extend rally after soft bond auction, then consolidate into the close. Two-year USTs better supported in Asia. U.S. stocks close at session high, e-minis grind higher in Asia, Nikkei softer. USD weakens in late New York, stabilizes in Asia, oil little changed.

U.S. Treasury holdings by primary dealers rose to a new record high.

Tariffs: U.S. President Donald Trump has ordered the administration to prepare country-specific reciprocal tariffs; existing non-tariff barriers like subsidies, regulations, lax intellectual property protection and VAT will also be considered (White House factsheet). Howard Lutnick, Trump's pick for commerce secretary, says all studies should be completed by April 1, Trump could start tariffs by April 2. Trump says tariffs on cars will be coming shortly and be "above" the reciprocal tariffs; reiterates threat of 100% tariffs if BRICS play games with the USD.

Geopolitics: Trump says Ukraine will have a seat at the table, won't be meeting Russian President Vladimir Putin in Saudi Arabia next week, would love to have Russia back in G7. Sees China's nuclear arsenal catch up in four-five years, proposes meeting with Russia and China to discuss cutting defence spending in half.

==EUROPE:

Europe: President Emmanuel Macron calls fiscal and monetary framework obsolete, tells FT Europe must "muscle up," respond to Trump's "electroshock," invest in defense, economic and tech capabilities. Trump states the European Union is "very difficult with us," Europe hasn't carried its weight in terms of money, the administration has told Europe and the United Kingdom to buy U.S. military equipment to maintain NATO.

Germany: 13% of voters are still undecided, 18% don't intend to vote or are unsure if they will (ARD survey). Prime Minister Olaf Scholz reiterates call to suspend debt brake, calls for higher defense spending. Latest Allensbach and Infratest polls show CDU/CSU at 32%, Linke at 6% and BSW miss 5% cut-off. Allensbach sees FDP at 5%.