07:22 AM EDT, 04/11/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries bear steepen into New York close, stabilize in Asia after strong demand at 30-year auction. U.S. equities recover into close but S&P still down 3.5%. E-minis and Chinese stocks stable overnight Thursday, NKY down 3.9%. EUR jumps above 1.13, a three-year high, oil stable.

Tariffs: President Donald Trump sees "transition problems" in light of tariffs on China of 145%. Sees the European Union as one bloc in trade talks, EU was "very smart" to avoid tariff retaliation. Threatens more tariffs on Mexico over water rights. Treasury Secretary Scott Bessent predicts "great certainty" on tariffs in 90 days. The U.S. and Vietnam agree to begin formal discussions on reciprocal trade. EU and United Arab Emirates to launch free trade negotiations. Bank of Japan, Bank of Canada, Bank of Koriwa had a meeting to discuss tariff impacts.

Fed: Federal Reserve Bank of Boston President Susan Collins says keeping rates unchanged best "for the time being," tariff-driven inflation could delay further cuts. Says 10%+ effective tariff rate may push inflation well above 3%. Chicago Federal Reserve Bank President Austan Golsbee calls tariffs "stagflationary shock," says political interference makes big hikes difficult, still sees lower rates over next one to two years. Kansas City Federal Reserve President Jeff Schmid would prioritize inflation if forced to balance the price stability goal against the mandate for full employment.

U.S.: House passes budget bill allowing "largest tax and regulation cuts ever" (Trump), must be aligned with Senate bill to be signed into law. March budget deficit narrows to $160 billion, estimate $145 billion.

==EUROPE:

EU leaders to meet Chinese President Xi Jinping in Beijing in July (SCMP). EU and China started talks to abolish tariffs on Chinese electric vehicles (Handelsblatt). French President Emmanuel Macron says the EU must avoid third-country flows that disrupt the market.

ECB: Economists still see only two more European Central Bank cuts to 2% in June, are split 50/50 between over -- and undershooting risk for inflation (Bloomberg survey).

Germany: Incoming coalition plans priority measures for first 10-12 weeks to induce turnaround in sentiment, Carsten Linneman tells ZDF.

Ukraine: The United Kingdom and France to advance military planning for the Ukrainian force.

==ASIA:

China acknowledged U.S. infrastructure hacks in secret meeting with U.S. (WSJ).