Powell Threats Cause US Stock Futures & Dollar to Decline – Europe Market Wrap

US stock futures and the currency fell substantially as traders reacted to the potential that Trump will attempt to dismiss Fed’s Powell.

S&P 500 futures fell 1%, and the Dollar index fell to a 15-month low as Wall Street prepares to reopen after the Easter holiday. Gold surged above $3,390 per ounce. On Friday, National Economic Council Director Hassett indicated Trump is considering firing Powell.

The Yen, Euro, and Swiss Franc all climbed. Brent slid as much as 2%, dropping below $67 a barrel. The majority of European financial markets remained closed due to a public holiday.

French Finance Minister Lombard has warned that if Trump fires Powell, he will jeopardise the Dollar’s reputation and destabilise the US economy.

Meanwhile, the Treasury yield curve steepened, with two-year notes gaining and longer maturities falling. This indicates that investors are relying on the possibility of interest rate decreases while also reflecting concerns about long-term US assets.