Core Points - The U.S. has halted a technology trade deal with the U.K. due to frustrations over the pace of progress [1] - The "technology prosperity deal" was announced in September during President Trump's state visit and aimed to enhance collaboration on technologies like AI, nuclear fusion, and quantum computing [1][2] - Trump emphasized that the deal would position both countries to lead the next technological revolution [2] - U.K. Prime Minister Keir Starmer described the agreement as a significant change in U.S.-U.K. relations, promising growth, security, and opportunities [2] - Talks were suspended last week, as reported by the Financial Times, citing unnamed British officials [2] - A U.K. government spokesperson reaffirmed the strength of the U.S.-U.K. relationship and commitment to the Tech Prosperity Deal [3]

Market Sentiment - Current market sentiment lacks significant momentum, with no immediate fundamental threats to alter the narrative, which is generally positive for stocks [1][3] - The absence of major central bank meetings or economic data due to the government shutdown contributes to a stable outlook [2] Dollar Dynamics - A potential year-end rally in the dollar is anticipated, which could pressure certain positions in the market, although it is expected to be a controlled rally [4][10] - A stronger dollar may lead to tighter financial conditions globally, impacting asset pricing, particularly for gold [6][10] Gold Market Implications - The consensus bullish position on gold may be challenged by a strengthening dollar and rising yields, which are key marginal inputs affecting gold prices [7][8] - Speculative short positions on the dollar could face a squeeze, leading to profit-taking in gold and other assets, potentially altering market narratives [9] Equity Market Outlook - The expectation is for equities to continue to rise despite existing worries, as there are no significant fundamental barriers to hinder growth [10] - The market is being monitored for any internal changes that could disrupt the current trajectory, although such a scenario is not considered the base case [9][10]