Asia stocks dip.
Most Asian stocks retreated on Tuesday as a rally on optimism over U.S. interest rate cuts ran dry, while investors remained averse to technology shares in anticipation of key earnings from Nvidia.
Chinese shares stalled after rallying to multi-year highs on Monday, while Japanese stocks hovered below record highs. Losses in commodity stocks also weighed on Australian markets.
Asian markets tracked a drop in Wall Street futures as U.S. President Donald Trump’s abrupt firing of Federal Reserve Governor Lisa Cook sparked concerns over the Fed’s independence. S&P 500 Futures fell 0.1% in Asian trade, having earlier fallen as much as 0.4%.
Overnight losses in Wall Street also spilled over into Asia, as caution over interest rates and Nvidia’s earnings weighed on risk assets.
China shares steady near multi-year highs
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.1% each. The CSI 300 remained close to a three-year high, while the Shanghai Composite hovered below its highest level in nearly a decade.
Asia FX, dollar trade cautiously.
Asian currencies and the U.S. dollar were largely subdued on Tuesday amid escalating concerns over the Federal Reserve’s independence following President Donald Trump’s unprecedented firing of Governor Lisa Cook.
The US Dollar Index, which measures the greenback against a basket of major currencies, fell 0.1% in Asia hours after trimming some of the losses earlier in the session.
US Dollar Index Futures also traded 0.1% lower as of 04:02 GMT.
Trump fires Fed’s Lisa Cook over alleged mortgage fraud.
President Trump announced Cook’s immediate removal in a social media post late Monday, citing allegations that she falsely declared two properties as primary residences in 2021 to secure favorable mortgage terms.
The Federal Housing Finance Agency (FHFA), led by Trump ally Bill Pulte, referred the matter to the Justice Department, initiating a criminal investigation.
Bitcoin price today hits 7week low near $110k.
Bitcoin fell to a seven-week low on Tuesday as traders shunned risk after U.S. President Donald Trump’s unprecedented dismissal of Federal Reserve Governor Lisa Cook deepened worries about the central bank’s independence.
As of 01:59 ET (05:59 GMT), the world’s largest cryptocurrency traded 1.8% lower at $110,231.8, its lowest since July 9.
It has now retreated nearly 12% from an August record peak above $124,000, erasing much of the rally built on bets the Fed would soon pivot to rate cuts.
Trump fires Fed Governor Lisa Cook
Trump on Monday announced he had fired Cook over allegations of mortgage fraud, accusing her of misrepresenting home-ownership status in 2021 loan documents.
The allegations, referred to the Justice Department by the Federal Housing Finance Agency, are disputed by Cook, who said her dismissal was unlawful and undermined the Fed’s political independence, according to a Washington Post report.
The rare removal of a sitting Fed governor jolted markets, raising fears of political interference in monetary policy. Investors struggled to assess whether the Fed can deliver policy guidance free of political pressure.
The move follows weeks of Trump criticism of Fed Chair Jerome Powell, whom he has publicly pressured to cut rates more aggressively.
Bitcoin and other digital assets are particularly sensitive to shifts in U.S. interest-rate expectations because lower borrowing costs tend to boost demand for speculative assets.
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