• The geopolitical landscape continues to be extremely volatile with the Israel-Iran situation building and ongoing reports of further missile exchanges, President Trump signaling a tougher stance on Iran, which is spooking US involvement fears. This anxiety, along with ongoing uncertainty regarding US tariff positions and policies, is keeping markets agitated world-wide, with US stock futures trading even as investors wait to know what interest rate moves the Federal Reserve will make.

• Monetary policy-wise, the Bank of Japan, while holding back on additional rate hikes for now in the face of increased US tariffs affecting Japan’s economy, remains wary of inflation upside risks, particularly from rising food and oil prices driven by the Middle East tensions. At the same time, Taiwan accelerated its participation in the US campaign to stem China’s ascendance in technology by blacklisting Huawei and SMIC, essentially barring its firms from doing business with these Chinese chip-making and AI giants without a license. The move is a historic one as it represents a new effort to encircle China’s semiconductor sector.

• In business news, Airbus raised its dividend target payout and reaffirmed its 2025 outlook to attempt to reassure investors of its future fortunes in the face of world challenges as the world of aerospace gathers to attend the Paris Airshow.