The AI Undercurrent

Over the past few days, financial markets have been navigating a fresh wave of policy and geopolitical cross-currents, with the US Supreme Court ruling on executive tariff authority adding a new layer of uncertainty to the trade outlook. At the same time, the AI investment boom continues to provide an important cyclical tailwind, even as investors remain alert to valuation risks. In our charts this week we focus on:

• The Global Business Cycle
• South Korea’s semiconductor trade
• US investment in AI infrastructure
• Germany’s capital spending renaissance
• Oil prices and monetary policy
• Japan’s economy and JGB yields