06:29 AM EDT, 06/06/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries stabilize into U.S. close, little changed in Asia. U.S. equities close at session lows, futures recover in Asia, regional markets mixed. USD, oil rangebound overnight Thursday.

Fed: Federal Reserve Governor Adriana Kugler says "first-order effect" of tariffs will be on inflation, not growth, supports holding interest rates. Kansas City Federal Reserve Bank President Jeff Schmid also sees tariffs as "likely to push up prices", but is less convinced on effect size. Federal Reserve Bank of Philadelphia President Patrick Harker favors "wait-and-see approach" as U.S. economy remains resilient.

White House: German Prime Minister Friedrich Merz nails White House meeting while Elon Musk/Donald Trump relationship implodes. White House aides scheduled a call for Friday to avoid further escalation (Politico).

U.S.: Atlanta Fed GDPNow for Q2 falls to 3.8% from 4.64%. District judge temporarily halts ban on international Harvard University students.

Trade: The European Commission has changed team for trade negotiations with the U.S., now including close President Ursula von der Leyen aide and Commissioner Maros Sefcovic cabinet member (Reuters). Brazilian President Luiz Inacio Lula da Silva calls for French President Emmanuel Macron to 'open heart' for Mercosur deal.

NATO: Members sign off on most ambitious ramp-up since the Cold War.

Russia-Ukraine war: President Trump says Russia and Ukraine may have to "fight for a little while" before he can broker a deal.

==EUROPE:

ECB: European Central Bank Governing Council (GC) members envisage pause in July, and "some" see the rate cut cycle already finished, while others still back another move probably in September (Bloomberg sources). Reuters reports "a clear majority" prefers steady rates in July and "a few even made the case for an even longer pause." GC member Madis Muller agrees with ECB President Christine Lagarde that rate cycle is almost finished. GC member Jose Luis Escriva stresses data dependence.

==ASIA:

US/China: Trump and Chinese President Xi Jinping agree to more trade talks, Trump accepts an invitation to visit China.