Global Markets:
- Asian Stock Markets : Nikkei down 0.06%, Shanghai Composite up 0.31%, Hang Seng down 0.10% ASX down 0.05%
- Commodities : Gold at $3496.35 (2.09%), Silver at $32.82 (0.95%), Brent Oil at $66.65 (0.60%), WTI Oil at $62.86 (0.71%)
- Rates : US 10-year yield at 4.425, UK 10-year yield at 4.5715, Germany 10-year yield at 2.4695
News & Data:
- (USD) CB Leading Index m/m -0.7% to -0.5% expected
Markets Update:
Asia-Pacific markets were mostly muted on Tuesday, following a sharp sell-off on Wall Street. The downturn in U.S. markets came after President Donald Trump intensified his criticism of Federal Reserve Chairman Jerome Powell, casting doubts on the central bank’s independence.
Japan’s Nikkei 225 and Topix indices traded flat, reflecting cautious sentiment. South Korea’s Kospi gained 0.19%, while the small-cap Kosdaq edged up 0.16%. In contrast, Australia’s S&P/ASX 200 declined by 0.63%. Hong Kong’s Hang Seng Index slipped 0.25%, and China’s CSI 300 dipped 0.17% at the open.
U.S. stock futures showed little movement. Futures linked to the Dow Jones Industrial Average were down 18 points, while S&P 500 and Nasdaq 100 futures hovered near the flatline.
The losses followed a turbulent session overnight in the U.S., where major indices plunged amid escalating tensions between the White House and the Federal Reserve. The Dow Jones Industrial Average dropped 971.82 points, or 2.48%, closing at 38,170.41. The S&P 500 fell 2.36% to 5,158.20, and the Nasdaq Composite tumbled 2.55% to 15,870.90.
President Trump’s renewed attacks on Powell have raised investor concerns about the Fed’s autonomy, particularly as there are limited signs of progress in ongoing global trade negotiations. Powell reiterated last week that the Fed’s independence is protected by law. According to economists at ANZ, markets are currently assessing whether Trump’s comments signal a serious intent to remove Powell or are part of a strategy to pressure the Fed into lowering interest rates.
Upcoming Events:
- 02:00 PM GMT – USD Richmond Manufacturing Index
- 02:00 PM GMT – EUR Consumer Confidence
