Tariff compromise between the US and Canada, selling pressure in the global bond market and geopolitical risks are at the focus of global markets

Donald Trump announced that a compromise was reached with Canada following intense talks with Mark Carney, delaying the 50% customs duties planned to be applied to billions of dollars of products. While this last-minute deal averted a commercial crisis, in the political arena, following Trump's rhetoric, mass deportation ideas appear to be discussed once again between the far right in Europe and the MAGA movement.

In financial markets, severe sell-offs in the global bond market stand out. While the decline in long-term US Treasury bonds increases borrowing costs, yields reaching the 6% level have turned into the biggest risk factor for equities. Due to this selling pressure, main US indices headed to close with losses for the third consecutive day. While the combination of debt burden, artificial intelligence spending and energy costs turns the bond market into a political issue, the process regarding Warsh is being followed on the Wall Street front.

On the geopolitical side, the possibility of tensions expanding in the Middle East is causing concern. With officials in Tehran considering a new conflict inevitable, Iran is considering targeting US assets beyond the borders of the Middle East and in Europe if Trump escalates the war.

On the other hand, new data regarding the relationship between technology and employment was shared. Research conducted by Goldman Sachs shows that artificial intelligence has begun to create pressure on employment markets in advanced economies. Despite all this, the Goldman Sachs CEO stated that he maintains his strong faith in NVIDIA, while Reuters compares this deal to auto loans.

This content is for general information purposes and is not investment advice.