Weekly Update (Nov 17th – Nov 23rd, 2025)

Global Economy: Markets respond to escalating geopolitical risk premium

This week, global markets exhibited volatility as investors reassessed the cumulative impacts of geopolitical tensions, including conflicts in Eastern Europe and the Middle East, in conjunction with intensifying strategic rivalry among major powers. Analysts identified increasing defence expenditures, disrupted trade routes, and rapid decoupling as factors influencing growth projections for 2026.

Indo-Pacific: Military operations in the Taiwan Strait attract regional attention

Military operations in the Taiwan Strait escalated, with heightened aerial and naval patrols raising fresh apprehensions among regional authorities. Although direct confrontation did not transpire, analysts cautioned that prolonged pressure may normalise heightened military presence and amplify the risk of miscalculation.

Europe: Germany faces pressure to clarify fiscal strategy

Germany came under growing pressure this week to articulate a clearer fiscal path after prolonged uncertainty over budget planning. Business groups and EU partners warned that continued ambiguity in Europe’s largest economy could weigh on investor confidence and complicate broader efforts at fiscal coordination.