WS #16114

Global equities are extending losses across European and Asian markets, with the DAX, CAC 40, and FTSE 100 all down over 1% as geopolitical tensions and domestic unrest weigh on sentiment. The escalation of Middle East hostilities—marked by the postponement of the Saudi FII conference and continued Israeli airstrikes—continues to support a risk-off environment, though Brent crude has stabilized near $107-108. Domestically, France is facing a severe security crisis with widespread riots and a reported loss of state control in major cities, prompting calls for curfews and adding a significant political risk premium to European assets. In the technology sector, a critical policy shift has occurred: the US Department of Homeland Security (DHS) has ordered the immediate removal of DeepSeek AI from all federal civilian systems. This action directly counters the previous bullish narrative surrounding the DeepSeek-Huawei partnership, signaling that US government adoption of the model is now prohibited. Concurrently, the broader AI infrastructure thesis remains robust, evidenced by Modal's acquisition of the first Nvidia Vera CPU server and continued analyst upgrades for key AI enablers. Meanwhile, Apple's supply chain signals (82-day lead times) and upcoming product events suggest underlying consumer demand resilience despite the macro headwinds.