06:26 AM EST, 03/07/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries rise into New York close, stay bid in Asia. U.S. equities close lower, Asian equities mixed. EUR trades above $1.08, Brent hovers around $69.5/barrel.

Fed: Federal Reserve Governor Christopher Waller says there is "nothing wrong with forecast of two rate cuts this year", but wouldn't support rate cut in March as more data is needed. Federal Reserve Bank of Atlanta President Raphael Bostic wants to remain patient on rates since the direction of economy is "very much up in the air".

Tariffs: U.S. President Donald Trump has delayed tariffs for Canadian and Mexican USMCA goods until April 2, as Canada and Mexico made "tremendous progress" on migration and drugs.

US: Trump says cabinet secretaries are in charge of staff cuts and should use a "scalpel," not a "hatchet".

==EUROPE:

European Central Bank officials see difficult negotiations ahead at the April meeting, with hawkish governors leaning towards a pause to sort out the latest fiscal developments (Reuters, Bloomberg sources).

EU summit: European Union leaders agree on defense spending plan (statement). French President Emmanuel Macron says he supports joint borrowing on this issue, outgoing German Prime Minister Olaf Scholz says defense won't pave the way for common EU debt. Leaders also agree on more support for Ukraine -- with the exception of Hungary -- emphasising the readiness of states to "contribute to security guarantees based on their respective competences and capabilities." Italian PM Georgia Meloni says Ukraine should be granted NATO security without actual membership.

Germany: Incoming PM Friedrich Merz is under pressure from his own CDU party about spending plans, which should include clear redemption plan and savings elsewhere (FAZ). Greens see a number of unresolved questions. 59% of Germans favor considerably higher debt for military and infrastructure spending, 48% think Merz won't be a good premier (ARD).