Geopolitical Tensions in Focus

Geopolitical risk remains a key market driver, with reports that Iran has laid out its conditions for reopening the Strait of Hormuz. In Eastern Europe, diplomatic and financial efforts concerning Ukraine continue, as former President Trump and President Zelenskiy are reportedly working on a solution to the war, while the IMF has pledged to help Ukraine find necessary funding for the next year.

Global Economic Outlook and Policy Shifts

The outlook for the global economy is seeing notable adjustments, as Brazil’s government trimmed its 2026 GDP growth forecast, citing a slower recovery and a cautious monetary easing cycle. In other economic news, Turkey's central bank anticipates that disinflation will persist, and the IMF is reportedly planning to scale back the frequency of its economic consultations for some nations.

US Policy and Spending Discussions

Discussions around future US policy are being noted, including comments from former President Trump on maintaining potash trade with Canada. Meanwhile, the current administration is seeking $30 billion in funding for upgrades to air traffic control systems, and a report has identified a frontrunner for a potential "AI czar" role in a future administration.