Market Stir: Trump's Fed Decision Shakes Global Equities
Global markets saw a downturn after U.S. President Donald Trump announced the firing of Federal Reserve Governor Lisa Cook, citing malpractices in mortgage loans. This decision has raised concerns about the Fed's independence. British and European market indices responded negatively, alongside a rise in long-term government bond yields.
Global financial markets faced turbulence as U.S. President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook, alleging misdeeds in securing mortgage loans. The announcement shook investor confidence, reawakening concerns regarding the independence of the Fed.
In the UK, the blue-chip FTSE 100 index fell 0.6% as it veered away from its peak performance observed last week. Key banking stocks, such as HSBC and Standard Chartered, heavily impacted the index, dropping significantly. Correspondingly, the pan-European STOXX 600 fell 0.7%, and Wall Street anticipated a weak opening.
Long-term government bond yields in the UK rose impressively, mirroring a trend in U.S. Treasuries. Deutsche Bank revisions affected numerous stocks, notably Wickes and Kingfisher, which saw marked declines. Meanwhile, Bunzl shares surged following a positive financial outlook and renewed share buyback plan.
(With inputs from agencies.)
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