Not blinking. Possibly winking

Daily update

India conducted military strikes against Pakistan, and Pakistan’s defense minister has pledged retaliation. Investors appear to be expecting a relatively contained situation. It is unlikely that global risk appetite will be affected by these events.
German Chancellor Merz was elected after a misstep in the Bundestag. While losing the first vote was unprecedented, it was also a secret ballot. If any member of the coalition wished to protest without repercussions, this was the time to do it. That anonymity does not exist with votes on legislation.
US Treasury Secretary Bessent may not have blinked at China in the trade standoff, but they have definitely winked. Meetings with China are due this weekend to talk about de-escalating current tensions. It is unlikely that China will rush to deal with the US. It is in the interests of most US trading partners to wait until more of the economic damage from tariffs is apparent, thus strengthening their bargaining power.
A total of 94 out of 94 surveyed economists expect the Federal Reserve to do nothing on rates today. Erratic government policy leaves the Fed as uncertain as everyone else about the best course of action, but that will not stop the press conference being a market focus.