06:31 AM EDT, 08/02/2024 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries (UST) remain supported in late New York and Asia with the 10-year yield below 4%. Weak ISM and pressure on Tech continue to resonate in Asia with e-minis expanding drop and Nikkei down almost 5%. DXY softer overnight, oil rangebound, gold up.

US: Small business job creation index unchanged at 15% in July, net share of firms expecting compensation growth fell to 18%. Atlanta Fed GDPNow forecast for Q3 falls to 2.55% from 2.83%.

US: Former President Donald Trump's campaign raised $138.7 million in July after $111.8 million in June, cash at hand $327 million at month-end.

Middle East: Iran and proxies meet to discuss retaliation (Reuters sources). The US is convinced Iran will attack Israel within days (Axios sources). President Joe Biden says he had a "very direct meeting" with Israeli Prime Minister Benyamin Netanyahu, now sees "basis for a ceasefire", but remains "very concerned."

== EUROPE:

BoE: Bank of England Deputy Governor Dave Ramsden says quantitative tightening (QT) can continue in 2025 even during cuts. Governor Andrew Bailey says rates won't go back to zero, will settle above pre-COVID levels.

German Budget: Budget compromise at risk as Finance Minister Christian Lindner's advisers voice concerns about loans to Deutsche Bahn AG and Autobahn GmbH and relabelling of KfW energy crisis funds and loan.

Germany: 37% of industrial companies are planning or already in the process of decreasing domestic production or moving it to different countries, up from 21% two years ago. DIHK sees 'Energiewende' as core driver, criticizes Economy Minister Robert Habeck's energy provision strategy as costly and unreliable (FAZ).

UK: Public inflation expectations increased 0.1pp in July, one-year to 2.7%, 10-year to 3.1%. (YouGov). Businesses' one-year wage growth expectations fell 0.1pp to 4.1% in three months to July (BoE Survey).

== ASIA:

China: Central bank (PBoC) adviser Huang Yiping criticizes Beijing's policies as overly conservative, says the concept of "focusing on investment and neglecting consumption" should be changed. Urges government to ramp up fiscal stimulus and promote consumer price index (CPI) target of 2%-3% as the economy is now "easy to cool but difficult to heat up."

Japan: Finance Minister Shunichi Suzuki says foreign exchange moves have both positive and negative effects, government to continue monitor moves.