Commerzbank on Overnight News

BY MT Newswires | ECONOMIC | 01/15/26 07:08 AM EST

07:08 AM EST, 01/15/2026 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries turn sideways in late New York session, soften in Asia, Japanese government bond curve flattens. U.S. equities recover into close, e-minis little changed amid mixed Asian equities. The euro (EUR) trades weaker. Oil slides on United States President Donald Trump's Iran comments.

Fed: Federal Reserve Bank of Minneapolis President Neel Kashkari says inflation is too high, but trending in the right direction. Adds that his outlook on the U.S. economy is "pretty good growth." Atlanta Federal Reserve President Raphael Bostic says restrictive policy still needed as the inflation challenge hasn't been won yet, while labor markets have slowed down, but aren't clearly weak.

Fed: President Trump says he doesn't have "any plan" to fire Fed Chair Jerome Powell (Reuters).

Beige Book shows economic activity up at "slight to modest pace," while employment is mostly unchanged across districts. Outlooks for future activity are "mildly optimistic."

US: The government will suspend immigrant visa processing for 75 countries.

Greenland: Danish foreign minister says "fundamental disagreement" with the U.S. remains after meeting in Washington.

Geopolitics: President Trump says he will watch Iran "and see what the process is" as sources "on the other side" have reassured that "killing in Iran is stopping." Iran temporarily closes airspace around its capital. Britain closes its embassy.

Venezuela: President Trump backs Venezuela staying in OPEC.

==EUROPE:

ECB: European Central Bank's Luis de Guindos says the level of capital held by European banks is at a correct level.

European Union clears the way for Germany's 12 billion euros relief package, including subsidies on electricity prices.

==ASIA:

Japan: Central bank (BoJ) Governor Kazuo Ueda sees a sustained wage-price mechanism, reiterates further hikes if forecasts are met.

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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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