07:13 AM EDT, 09/12/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries with front-end driven consolidation into New York close, long-end better supported after "solid" 30-year auction, rangebound in Asia. U.S. equities close near session high, S&P with next record, futures stable, Asian equities up. Us dollar (USD) and gold strengthen, oil weakens overnight Thursday.

Fed: Senate Republicans plan to confirm President Donald Trump's nominee Stephen Miran on Monday, allowing him to participate in the FOMC meeting starting on Tuesday. Trump asks the appeals court to let him fire Federal Reserve Governor Lisa Cook before next week's meeting. Treasury Secretary Scott Bessent aims to add one to two names to Fed Chair shortlist.

U.S.: Budget deficit climbed to an all-time high of $345 billion in August (consensus was for $340 billion), despite record tariff revenues of $30 billion.

Tariffs: Commerce Secretary Howard Lutnick says South Korea must "come through with the paperwork" or pay tariffs, predicts the U.S. will eventually reach deals with Taiwan, Switzerland and India ("once they stop buying Russian oil"). Bessent will meet Chinese Vice Premier He Lifeng in Madrid next week.

Currencies: Bessent and Japanese Finance Minister Katsunobu Kato reaffirm basic commitment to "not target exchange rates for competitive purposes."

Oil: The U.S. plans to pressure G7 to impose higher tariffs on India and China for buying Russian oil (FT).

Brazil: Trump says the 27-year jail sentence for former Brazilian President Jair Bolsonaro is "bad for Brazil," Secretary of State Marco Rubio says the U.S. will "respond accordingly to this witch hunt."

==EUROPE:

ECB: The European Central Bank is convinced no more cuts are needed to deliver on 2% inflation target, undershooting by new staff projections notwithstanding (Bloomberg sources). Debate on rate cut is "not over just yet," discussion more likely at the December than the October policy meeting (Reuters sources).

ECB: Governing Council (GC) member Francois Villeroy de Galhau says upward risks to inflation are lower than downward risks, another rate cut is possible in the coming meetings. GC member Christodoulos Patsalides says "present interest rates are appropriate if inflation develops as projected," sees no need for action in the absence of "any other significant development." GC member Gediminas Simkus says inflation has settled at target, but risks are high; it's important to keep all doors open.