06:34 AM EDT, 04/04/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries extend rally in Asia. U.S. equities close at session lows, e-minis with renewed weakness in late Asian trading, Japan leads regional losses. USD softer overnight, oil stabilizes after Thursday's drop, gold consolidates.

Tariffs: U.S. President Donald Trump says market response was expected, but "market is going to boom." Likes interest going down; is open to tariff cuts in case of "phenomenal" offers. Trump says U.S. will "soon" slap tariffs on chips and pharmaceuticals. Commerce Secretary Howard Lutnick says Trump won't back off his announced tariffs. IMF calls tariff push "a significant risk to the global outlook at a time of sluggish growth."

Fed: Federal Reserve Governor Lisa Cook says Fed could cut rates over time if inflation cools and uncertainty ebbs; sees "higher initial inflation and slower growth" pose challenges for monetary policy. Fed Vice Chair Philip Jefferson sees "no need to be in a hurry" as Trump-impact becomes clear.

NATO: U.S. Secretary of State Marco Rubio insists the Trump administration has no intention to leave NATO over spending conflicts.

==EUROPE:

EU: French President Emmanuel Macron calls for "collective solidarity", urges European Union companies to pause U.S. investments. EU Trade Commissioner Maros Sefcovic says bloc is ready with countermeasures.

EU is preparing fines against X of more than $1 billion for breaking the law to combat illegal content and misinformation (NYT).

EBA: Almost 25% of European banks have insufficient USD-funding to cover their US dollar-exposures, new report reveals. Some EU officials doubt that Fed swap line with the European Central Bank can still be relied upon (FT).

The United Kingdom published an "indicative long list" of U.S. goods it could include in potential retaliatory tariffs.

France: Trump calls far-right leader Marine Le Pen's case a "witch hunt" and "bad for France."

Russia: President Vladimir Putin's investment envoy, Kirill Dmitriev, tells CNN that Russia isn't asking for any sanctions relief at this point, but if U.S. businesses want to come back to Russia, it would be a good thing for America. Differences would remain in ceasefire talks, diplomatic solution only option.

==ASIA:

Japan: Governor Kazuo Ueda tells parliament the Bank of Japan would take "appropriate" actions if outlook changes. BoJ Deputy Governor Shinichi Uchida sees downward pressure on global economy from tariffs, but expects them have both upward and downward impact on inflation in Japan.