Commerzbank on Overnight News

BY MT Newswires | ECONOMIC | 10/07/25 06:35 AM EDT

06:35 AM EDT, 10/07/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: United States Treasuries, Bund- and OAT-futures are little changed. Japanese government bonds rally after 30-year auction. Equities stay firm, US dollar (USD) and oil supported, gold hits a new high.

Fed: Kansas City Federal Reserve Bank President Jeff Schmid says rates are "appropriately calibrated," monetary policy should "lean against demand growth" to relieve price pressures.

U.S.: President Donald Trump announces 25% duties on imports of medium- and heavy-duty trucks starting in November.

==EUROPE:

France: President Emmanuel Macron tasks Sebastien Lecornu "with the responsibility of conducting final negotiations by Wednesday evening in order to define a platform for action and stability for the country." Former Finance Minister Bruno Le Maire says a new cabinet can be formed after his exit.

ECB: President Christine Lagarde reiterates at European Union hearing that "ECB is in a good place." The European Central Bank is "very attentive" to using frozen Russian assets (speech).

BoE: Bank of England Governor Andrew Bailey says the United Kingdom must boost investment and should be optimistic about AI.

U.K.: Inflation delivers net five billion pounds revenue boost to budget (FT). Steel industry warns of "biggest crisis" due to new EU tariffs.

Germany: The government confirms extension for electric vehicle tax exemption until 2035.

==ASIA:

Japan: Finance Minister Katsunobu Kato will closely watch any excessive foreign exchange moves.

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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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