And this could cause a massive volatility.
First of all, the markets are already going through the US-Iran war, which has choked 20% of global oil supply.
But that's something that markets have already priced in.
What's new happening is China's military build-up around Taiwan, which is the largest in weeks.
As we know, the entire US stock market has been held up by AI companies, and Taiwan is a crucial part of it.
Taiwan produces almost 60% of the world's semiconductors and 90% of advanced chips, which are used in AI, data centers, etc.
If China attacks Taiwan now, it would create a global crisis worse than 2020 and 2008.
Now, moving to other macro data, the US will release PPI and Core PPI data this week.
The Fed interest rate decision and Powell's press conference will happen this week.
Not only that, but the Bank of Japan, European Central Bank, and Bank of England interest rate decisions will also happen this week.
And the timing of these meetings is very important.
Europe is going through an energy crisis, Japan is suffering from rising inflation, and US consumers are also facing high gas prices.
All this could make central banks more hawkish, and they could hint about tightening, which is not something markets want.
So this week, we have:
US-Iran on-going war
Threat of China attack on Taiwan
US inflation and jobs data
Fed, BOJ, ECB, and BoE interest decisions.
Needless to say, this is going to create immense volatility.