Investors are hedging against a potential reversal in the AI trade, lifting demand for credit default swaps and prompting caution over new bond deals. Questions over funding costs and cloud profitability at major tech groups, including Meta and Oracle, are adding to unease on Wall Street.

The EU imposed an indefinite freeze on €210bn in sovereign assets linked to a sanctioned regime, backed by Britain and partners. The step seeks leverage for diplomacy and could channel proceeds to reconstruction. The targeted state has filed a legal challenge.

Talks on the OECD global minimum tax are close to collapse as China and several EU countries oppose a US carve‑out meant to ease compliance for multinationals. Officials warn failure could upend the pact and revive threats of retaliatory tariffs, leaving cross‑border tax rules in limbo.

The Fed cut interest rates to a three-year low, its third reduction in a row, saying a softening jobs market now outweighs inflation. Powell said the call was close, policymakers were split, and guidance remains data-dependent amid risks to employment and growth.