SocGen's Overnight Economic News Summary

BY MT Newswires | ECONOMIC | 08/13/25 06:05 AM EDT

06:05 AM EDT, 08/13/2025 (MT Newswires) -- Societe Generale in its early Wednesday economic news summary pointed out:

-- US dollar stays softer with lower two-year United States Treasury yield after friendly July goods consumer price index excluding autos (0.2%) cements case for Federal Reserve September rate cut, OIS pricing -23.5bps, VIX below 15. Treasury Secretary Bessent says Fed should be open to a half-point reduction.

-- European Union leaders hold call with President Trump at 4 p.m. CET on Russia/Ukraine before the Alaska summit on Friday. Press conference with German Prime Minister Merz at 7 p.m. CET.

-- Day ahead: Federal Reserve speakers Barkin, Goolsbee, Bostic. Bond auctions from Italy and Germany. Retail sales for Brazil and South Africa. Poland's preliminary Q2 GDP.

-- Nikkei +1.4%, EUR 10-year IRS -1bp at 2.68%, Brent crude -0.3% at $66.0/barrel, Gold +0.2% at $3,355/oz.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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