Commerzbank on Overnight News

BY MT Newswires | ECONOMIC | 06:43 AM EDT

06:43 AM EDT, 05/07/2026 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Wednesday highlighted:

Markets: United States Treasuries trade sideways in New York and Asia. U.S. equities rise into close, futures little changed in Asia. Asian equities supported. The euro (EUR) is rangebound. Brent near US$102/barrel.

Fed: Chicago Federal Reserve President Austan Goolsbee says impact of Artificial Intelligence (AI) on monetary policy uncertain; rate cuts possible if productivity growth happens unexpectedly, otherwise rates could rise.

Iran war: President Donald Trump says Tehran agreed not to have nuclear weapon, deal is "very possible," says talks over last few days were "very good," he is optimistic about a framework within one week. Iran to respond to U.S. proposal on Thursday (CNN source).

Iran issues guidance to commercial vessels in Strait of Hormuz, says fully ready to provide maritime support.

==EUROPE:

Germany: Thursday's tax estimates to show small decline, larger gap for 2028 (HB).

Germany: Far-right AfD hits new high of 41% in Saxony-Anhalt ahead of election.

EU: Council reaches provisional deal to streamline some AI rules. European Commission mulls suspending methane emissions fines amid energy crunch (FT sources).

==ASIA:

Japan: Currency chief Atsushi Mimura says speculative moves continuing in foreign exchange market, responding on all fronts. Notes IMF rules don't limit number of Japan's interventions.

China: Authorities ask banks to pause new loans to U.S.-sanctioned refiners.

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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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