As global markets grapple with the possibility of a U.S.-led economic downturn, investors are shifting towards defensive assets, with European defense and construction sectors seeing a surge in interest after Germany's announcement of increased spending. Concerns over a potential U.S. recession are exacerbated by fears of inflation, though Federal Reserve Chairman Jerome Powell's recent comments have offered some reassurance, suggesting that growth is not immediately at risk. Amidst this financial unease, political and corporate developments are unfolding, with Mark Carney becoming Canada's Prime Minister, Elon Musk stirring defense debates, and major companies across the globe preparing to release their earnings reports.