World stocks slide as Trump’s Fed attacks jangle | Australian Markets

Asian equities and US stock futures have slid whereas the greenback slumped, as anxiousness over tariffs and public criticism of the Federal Reserve by President Donald Trump hit sentiment, main gold costs to a new high.

Trump launched a collection of attacks towards Fed Chair Jerome Powell on Thursday, along with his group evaluating whether or not they may fire Powell, a transfer that has great consequence for the central bank’s independence and for world markets.

Most markets had been closed on Friday and a few stay on vacation for Easter Monday.

S&P 500 futures fell 0.64 per cent and Nasdaq futures eased 0.53 per cent on Monday. In Asia, Japan’s Nikkei fell one per cent whereas South Korea’s benchmark index was regular.

“Markets are already on edge due to escalating geopolitical tensions, and now concerns are rising that Trump’s potential interference with the Fed could add another layer of uncertainty,” mentioned Charu Chanana, chief investment strategist at Saxo in Singapore.

“Any signs of political pressure on monetary policy could undermine the Fed’s independence and complicate the path ahead for interest rates just as investors are looking for stability amid global volatility.”

Trump’s tariffs have roiled financial markets and triggered a violent sell-off in Treasuries and the greenback that solid recent doubt on the long-held perception within the safe-haven standing of US belongings.

The shaky confidence in US belongings has been exacerbated by Trump’s attacks on the Fed, with the greenback crumbling towards most different currencies. The euro touched a three-year high, whereas the yen was at a seven-month peak.

The Swiss franc strengthened 0.6 per cent towards the greenback and was hovering close to the 10-year peak it touched earlier in April.

Chicago Federal Reserve President Austan Goolsbee mentioned on Sunday that he hopes the US is just not shifting to an surroundings the place the power of the central bank to set financial coverage unbiased of political strain is questioned.

The yield on the benchmark US 10-year Treasury be aware rose three foundation factors to 4.358 per cent in early Asian hours.

With the US earnings season kicking off, investor focus this week shall be on outcomes from tech giant Alphabet, chipmaker Intel and EV maker Tesla.

All the Magnificent Seven megacap stocks are sharply decrease in 2025, with Alphabet down about 20 per cent and Tesla off 40 per cent.

Companies and traders are grappling with a tariff panorama poised to keep shifting as the Trump administration negotiates with different international locations.

While Trump has paused some of the heftiest levies on imports, the US can also be locked in a trade battle with China, the world’s second-largest economic system.

Trump mentioned on Friday the US is having good conversations privately with China amid the 2 international locations’ trade struggle. But China’s ambassador to the US has mentioned it ought to show respect earlier than any talks can happen.

In commodities, gold costs surged more than one per cent to the touch a file high of $US3,370.17 per ounce, taking its positive factors up to now this yr to 26 per cent. The yellow steel has been persistently hitting file highs this yr, buoyed by secure haven flows.