06:15 AM EDT, 03/14/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries extend rally into New York close after soft 30-year auction, bear-steepen modestly in Asia. E-minis rebound after U.S. stocks close near intra-day lows; Asian shares rally. DXY strengthens, gold hits record high above $2990/oz, Brent recovers to 70$/barrel.

U.S.: Top Senate Democrat Chuck Schumer drops threat to stop spending bill. Commerce Secretary Howard Lutnick wants to reach a balanced budget in three, not four, years. Says waiving income taxes for salaries of less than $150,000 is on President Donald Trump's mind.

NATO: Trump says NATO has to be kept strong and relevant. NATO Secretary-General Mark Rutte says Europe is committing to much higher defense spending, needs to produce more weapons.

Ukraine: Russian President Vladimir Putin supports the idea of a ceasefire "unconditionally" but insists it must lead to a final settlement that would "solve the root cause" of Russia's invasion. European Union defense white paper calls for joint procurement of weapons with Ukraine; EU troops or mutual defense clauses only if U.S. is involved (FT).

==EUROPE:

ECB: European Central Bank President Christine Lagarde tells BBC that Trump's policies are "causing a level of uncertainty that we haven't seen in a long time". "Real trade war" would have "severe consequences for growth and prices", particularly for the U.S. Governing Council (GC) member Francois Villeroy de Galhau says the Trump Administration sees economics like a global Monopoly game. GC member Joachim Nagel describes what it's doing as "from the economic house of horrors."

Germany: CDU leader Friedrich Merz says "things are difficult," but he is optimistic he can reach a compromise on a fiscal spending package with the Greens next week and isn't concerned of vote being voided by the constitutional court (GCC). Greens want to split the package to assure approval on higher defense spending first, discuss infrastructure spending later. GCC rejects expedited requests for vote recount by BSW.

EU: EU foreign policy chief Kaja Kallas says EU doesn't want a trade war with the U.S., says China is "really benefiting from the U.S. having a trade war with Europe."

France: President Emmanuel Macron's approval jumped by six percentage points to 27% versus last month (Elabe poll).

Spain: Prime Minister Pedro Sanchez vows higher defense spending won't let to social spending cuts.

Portugal: Parliamentary elections will be held on May 18.