Global Markets React to US Fiscal Shift, Geopolitical Tensions, and Monetary Policy Stance

Fiscal Landscape - The U.S. government's interest payments on its national debt have reached a record $1.21 trillion, surpassing the entire defense budget for the first time since at least 1940 [2][9] - Projections indicate that interest payments could rise to $1.6 trillion by 2034, consuming over 20% of the federal budget, raising concerns about long-term fiscal sustainability [3][9] Global Monetary Policy - The European Central Bank (ECB) has maintained its key deposit rate at 2%, citing stable inflation and a resilient economic outlook, with future decisions being data-dependent [4][9] - Anticipation is building for the Federal Reserve to implement a rate cut in the U.S., following mixed economic data, which has positively impacted gold prices [5][9] Corporate and Energy News - Baidu's Hong Kong shares are expected to open 3.8% higher, reflecting positive market sentiment [13] - The International Energy Agency (IEA) has released a higher oil surplus estimate, leading to a decline in crude prices [14] - Petronas has delivered Malaysia's first blended sustainable aviation fuel (SAF) to KL International Airport, marking a step towards sustainability [14] International Trade - A U.S. envoy has expressed optimism about resolving a tariff dispute with India, as negotiations continue to address the trade imbalance [15]