President Trump announced a 90-day extension to the tariff truce with China, preventing an immediate escalation of trade tensions. This extension aims to provide more time for both countries to address outstanding issues such as tariffs on certain imports, concerns about China’s crude oil purchases from Russia and Iran, and operational challenges faced by U.S. companies in China.In a notable development within the semiconductor sector, U.S. giants Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) have agreed to remit 15% of their AI chip sales revenue from China to the U.S. government, a move tied to export licensing that could influence international trade and corporate strategies in tech.Financial markets have reacted positively, with tech stocks pushing the S&P 500 higher and Nvidia’s market capitalization surpassing the $4 trillion mark. U.S. Treasury bonds attracted robust demand, with the yield curve continuing to flatten amid expectations of key inflation data. After some recovery, the DXY remains stable, while the CHF attempts a rebound and the JPY sees some selling pressure. A similar weakness is observed in the CAD.On the monetary policy front, internal debate persists within the Fed over the inflationary impact of tariffs. While markets price in possible interest rate cuts, the Fed’s collective decision-making process suggests a cautious approach toward aggressive policy shifts.In housing, reduced mortgage rates have boosted refinancing and home purchase activity, though consumer confidence remains fragile. Meanwhile, President Trump’s announcement to federalize the Washington, D.C. police force and deploy National Guard troops has stirred controversy, particularly given crime statistics showing a downward trend in recent years.Geopolitically, the U.S. government imposed new sanctions on Iran and signaled increased defense spending with a $1.3 billion purchase of Patriot missile systems. Concurrently, regulatory scrutiny on universities regarding international student policies is intensifying.Energy markets show crude oil prices steady as traders weigh rising U.S. inventories and export restrictions on Iranian oil. Precious metals experienced volatility, with copper prices plunging after President Trump announced a planned 50% tariff, while gold prices, after a slight sell-off, continue to trade within a narrow range. Corporate leadership shifts were highlighted by the departure of X’s CEO Linda Yaccarino, signaling a strategic pivot toward an AI-focused vision for the platform.In the cryptocurrency space, Bitcoin surged past $122,000, driven by robust institutional demand and heightened risk appetite. Currently, some profit-taking is being observed.EuropeEuropean markets maintain a cautiously optimistic tone as German government bonds recovered slightly after previous declines, and European equities extended gains for a third consecutive session, led by Italy’s UniCredit in the banking sector. Investors are closely monitoring upcoming German inflation data and remarks from key ECB officials, including Cipollone and Villeroy, which may offer insight into future interest rate moves.Trade tensions between Brussels and Beijing remain a significant concern. China is pressing the European Union to relax restrictions on high-tech exports, which could strain transatlantic cooperation and complicate the broader geopolitical landscape.Asia-PacificThe Asia-Pacific region shows a wait-and-see stance in monetary policy. Both the RBA and the RBNZ kept interest rates unchanged, citing persistent inflation and mixed domestic demand. The RBA also announced plans to refine its policy analysis methods.In corporate news, Australian developer Lifestyle Communities shares dropped after a legal ruling, while Qantas revealed a data breach affecting 5M+ customers.Technology firms remain a focal point, with Samsung launching new foldable smartphones and AI-enabled wearable devices. Apple (NASDAQ:AAPL) is expected to follow with its own foldable device next year, as Samsung (KS:005930) strives to maintain its leadership in this emerging segment.China faces economic headwinds with sluggish domestic demand prompting considerations for new stimulus measures. Regulatory tightening continues, especially regarding competition and employment support. Goldman Sachs lowered its forecasts for China’s producer price inflation, reflecting these challenges. The Golden Dragon Index, representing Chinese tech stocks, ended a five-day rally, weighed down by declines in Alibaba (NYSE:BABA) and JD.com.Regional currencies like the AUD and NZD are experiencing moderate selling pressure amid ongoing trade tensions and leadership changes, with central bank communications shaping market expectations.