Ukraine peace talks, U.S. dollar momentum, AI bonds...

Barclays research forecasts a positive momentum for the U.S. dollar heading into 2026, supported by a firmer footing for risk assets. This outlook aligns with the Federal Reserve's efforts to stabilize inflation and suggests a favorable environment for dollar-denominated assets. The strengthening dollar could enhance the appeal of U.S. markets to international investors, while potentially impacting export competitiveness for American companies. Wall Street Journal (Markets)

The Wall Street Journal reports that a surge in newly issued AI-related bonds has led to price declines, exacerbating concerns about stock market overvaluations. This development reflects investor caution regarding the expanding role of artificial intelligence in financial markets, as well as the broader implications of speculative investments in this sector. The bond market's reaction underscores the need for careful risk assessment amid rapid technological advancements. Wall Street Journal (Markets)

Oil prices fell in early Asian trade due to fears of increased supply entering the market, according to the Wall Street Journal. This decline may signal concerns about oversupply relative to demand, potentially complicating efforts by oil-exporting nations to stabilize prices. Such trends could influence energy companies' performance and broader market dynamics, particularly in commodities-linked economies. Wall Street Journal (Markets)

Gold prices remained stagnant, with central bank demand and uncertainty over the Federal Reserve's next monetary policy move creating a cautious trading environment, reports Forex.com by StoneX. This indecision highlights the ongoing tension between gold's traditional role as a safe-haven asset and market participants' sensitivity to interest rate adjustments. Wall Street Journal (Markets)

The Boston Globe highlights significant progress in peace talks between the U.S. and Ukraine regarding the conflict with Russia. Negotiators are reportedly narrowing differences, though contentious issues remain unresolved. The talks, which excluded several European allies, have drawn criticism, particularly from President Trump, who accused Ukraine of insufficient gratitude. Observers note that the success of these negotiations hinges on securing Russian cooperation and addressing regional security concerns. bostonglobe.com

An Israeli strike on Beirut killed Hezbollah's military chief Haytham Ali Tabatabai, marking the first such attack on the city in over five months, reports the Washington Post. This escalation has raised fears of broader regional conflict, highlighting the fragile balance of power in the Middle East. Analysts caution that such incidents risk sparking retaliation, further destabilizing an already volatile region. Washington Post (World)

A rift within the Republican Party over AI regulation is emerging, as President Trump pushes for federal preemption of state laws, reports the Boston Globe. While tech investments drive economic growth, concerns about job losses and societal impacts are fueling bipartisan calls for regulation. The political divide underscores the challenges of balancing innovation with public interest in the rapidly evolving AI landscape. bostonglobe.com

Letters from the FBI, notifying recipients of surveillance tied to a corruption investigation, have unsettled California's political elite, according to the Boston Globe. The case involves allegations against former officials linked to Governor Newsom, raising questions about transparency and ethical governance. While no elected officials have been charged, the investigation could have political ramifications for upcoming elections. bostonglobe.com