Group 1 - The KSE30 index in Pakistan experienced a significant drop of 7%, marking the largest decline since 2008, following a market halt due to escalating tensions between India and Pakistan [1][2] - Pakistan has initiated a military operation named "Copper Wall Iron Wall," which included cyber attacks on India, resulting in approximately 70% of India's power grid being incapacitated [2] - The military conflict has led to increased activity in the defense and aerospace sectors, with the military industry sector showing a strong five-day rally, accumulating over 7% in gains [2] Group 2 - The recent geopolitical tensions have prompted significant inflows into defense ETFs, with the Guotai Military ETF and the Military ETF from E Fund seeing net inflows of 83 million and 24 million respectively [4] - The U.S. stock market has shown a cautious stance ahead of the upcoming U.S.-China trade talks, with investors exhibiting a bearish sentiment, as evidenced by a record 11-week streak of bearish outlooks [6][8] - The recent monetary policy changes in China, including interest rate cuts, have led to an unusual rise in long-term interest rates, indicating a potential recovery in investment sentiment [10][16]