06:22 AM EDT, 06/13/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: Risk-off with e-minis down more than 1.5%. United States Treasuries continued bull-flattening after a strong 30-year auction, bid in early Asian trading, before moderate weakening. Brent rallies over 10% before calming down to around $75/barrel. EUR declines below $1.155.

U.S.: President Donald Trump says he "may have to force something" to get Federal Reserve Chair Jerome Powell to lower interest rates; also says that he won't fire Powell. Federal judge rules that Trump illegally federalized the California National Guard.

Middle East: Israel launches military strikes on Iran's nuclear and military infrastructure, kills Revolutionary Guard chief Hossein Salami and Armed Forces chief Mohammad Bagheri. Israeli Prime Minister Benjamin Netanyahu says the campaign would continue "as long as it takes." Iran vows retaliation and U.S. assets in the region could also be targeted. Israel says Iran launched over 100 drones in the last few hours. Secretary of State Marco Rubio says the U.S. isn't involved. President Trump says he was made aware of strikes before they happened and still hopes Iran will come to the negotiating table.

==EUROPE:

Germany is against new European Union debt and larger budget. Position paper says government "rejects perpetuation of this extraordinary and temporary (NGEU) instrument; an extension is legally impossible" (FAZ).

Italy: Foreign Minister Antonio Tajani says it will take a decade to meet NATO's 5% of gross domestic prouct defense spending target.

Spain: Prime Minister Pablo Sanchez says he will finish his term and not call early parliamentary elections.