Markets Are Cautious Ahead of A week Packed With Central Banks, Says Scotiabank

BY MT Newswires | ECONOMIC | 09/12/25 08:02 AM EDT

08:02 AM EDT, 09/12/2025 (MT Newswires) -- The week is ending with a cautious mood across markets ahead of a week packed with global central bank decisions, said Scotiabank.

The Bank of Canada is slated to release its policy statement at 9:45 a.m. ET on Wednesday.

Bonds and stocks are both slightly cheapening early Friday, noted the bank.

Eurozone government bonds and United Kingdom gilts are underperforming United States Treasuries by a few basis points, but they're not major moves, stated BMO.

Equities are mildly lower across most exchanges outside of London.

The US dollar (USD) is broadly stronger, with the lone exception being the Taiwan dollar (TWD) due to potentially encouraging trade negotiations with the U.S. and a supportive fiscal package, added the bank.

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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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