Trump Tarrif and china
U.S. assets dumped, with dollar at three-year low vs euro
Safe-haven currencies yen and Swiss franc surge
Gold notches another record high
European markets closed for Easter Monday
SINGAPORE, April 21 (Reuters) - Asian equities and U.S. stock futures slid on Monday as anxiety over tariffs and criticism of the Federal Reserve by President Donald Trump shook investor confidence, pushing the dollar sharply lower and catapulting safe-haven gold to a record high.
Trump launched a scathing attack against Fed Chair Jerome Powell on Thursday, with his team evaluating whether they could fire Powell, a move that would cast doubts about the central bank's independence and further erode faith in U.S. assets.
Most markets were closed on Friday and some, including most of Europe, remained on holiday for Easter Monday, leading to thin liquidity.
S&P 500 futures fell 0.75% and Nasdaq futures slid 0.8%. In Asia, Japan's Nikkei (.N225), opens new tab and Taiwan's benchmark index (.TWII), opens new tab were down more than 1% but Chinese stocks inched higher.
"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," said 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 selloff in Treasuries and the dollar in April that stoked doubt in the long-held belief in the safe-haven status of U.S. assets.
The drop in confidence in U.S. assets has been exacerbated by Trump's attacks on the Fed and Powell through last week.
The relentless selling in the dollar led euro to a three-year high on Monday, while the yen hit a seven-month peak. The Swiss franc strengthened to its highest against the dollar in over 10 years.
Chicago Federal Reserve President Austan Goolsbee said on Sunday that he hopes the United States is not moving to an environment where the ability of the central bank to set monetary policy independent of political pressure is questioned thus will take adequate steps