Commerzbank on Overnight News

BY MT Newswires | ECONOMIC | 06:31 AM EST

06:31 AM EST, 12/19/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries recover into New York close, resume downtrend overnight, long end leads the Japanese government bond sell-off. Equity futures stable after volatile U.S. session, bullish Nikkei leads regional markets. The US dollar (USD) appreciates, yen (JPY) weakens, oil little changed in Asia.

Fed: Chicago Federal Reserve President Austan Goolsbee says the November inflation report contained a "lot to like" after voting to stay put at last FOMC decision. President Donald Trump praises Federal Reserve Governor Christopher Waller and Federal Reserve Vice Chair for Supervision Michelle Bowman, says he is interviewing "three or four" candidates as the next Fed chair, will announce his pick "over the next couple of weeks."

U.S.: Trump is considering declaring a national emergency over housing. Trump plans "patriot games" to celebrate the 250th birthday of the U.S.A.

USTs: Trump orders closure of federal government from next Wednesday to Friday (Bloomberg), conflicting with the scheduled seven-year auction.

==EUROPE:

BoE: Bank of England Governor Andrew Bailey expects scope for "gradual path down to continue" but sees cutting pace easing off "at some point."

EU rejects Russian asset deal for Ukraine, agrees to provide 90 billion euros loan for 2026-2027 via capital market funding. Issuance will be backed by European Union budget headroom, excluding the Czech Republic, Hungary and Slovakia. Loan to start in Q2. The EU reserves the right to repay via Russian assets.

EU/Mercosur: European Commission Ursula von der Leyen says blocs have agreed to delay trade deal signature.

==ASIA:

Japan: The central bank (BoJ) hikes to 0.75% in a unanimous decision, says will keep raising rates if growth and inflation outlooks realise.

Japan: November consumer price index falls in line with expectations.

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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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