A stunning late-night edict from the White House has sent a powerful tremor through global markets, as US President Donald Trump abruptly fired Federal Reserve Governor Lisa Cook, amplifying a wave of fear already stoked by his escalating tariff rhetoric. The move, announced in a social media post, was seen as a direct assault on the central bank’s independence, sending investors fleeing from risk and scrambling for safety.This presidential shockwave was not an isolated event but the crescendo of an increasingly aggressive posture. Trump had already put markets on edge by threatening “200% tariffs or something” on China if it restricts rare-earth magnet exports, while also warning of new levies on any country that imposes digital taxes. The one-two punch of a destabilized Fed and renewed trade war fears proved too much for a market already on a knife’s edge.A flight to safety, a sea of redThe reaction across Asian markets on Tuesday was swift and decisive. A sea of red washed over the major bourses, with Japan’s Nikkei 225 sliding 1.01%, Hong Kong’s Hang Seng Index falling 0.44%, and mainland China’s CSI 300 dropping 0.68%, snapping a four-session winning streak. The sell-off, which followed a negative session on Wall Street, was a clear signal of investor anxiety.In a classic flight to safety, the Japanese yen gained 0.3% against the dollar, while gold strengthened to 3,372. The US dollar index, a measure of the greenback’s strength, fell 0.16% on the news of Cook’s termination, a sign of faltering confidence in the stability of US monetary policy.The tariff shadow falls on Dalal StreetNowhere was the presidential pressure felt more acutely than on Dalal Street. After kicking off the week with a rally fueled by dovish signals from the Fed, Indian equities were set for a painful reversal. A draft notice revealing Trump’s plan to slap 50 percent tariffs on Indian goods, citing New Delhi’s purchase of Russian oil, sent a chill through the market before the opening bell.At the open, the Sensex tumbled 258.52 points (0.32%) to 81,377.39, while the Nifty fell 68.25 points (0.27%) to 24,899.50. The sharp reversal wiped out the previous day’s optimism, serving as a stark reminder of how quickly the geopolitical landscape can shift under the current administration.As the dust from the overnight turmoil begins to settle, investors are now bracing for the next potential sources of volatility. All eyes are on the horizon, warily watching for bellwether Nvidia’s upcoming earnings report and the next reading of the Federal Reserve’s preferred inflation gauge, searching for a steady hand in an increasingly unsteady world.The post Asian markets open: Nikkei falls 1.01%, Sensex opens 0.32% lower amid tariff threats appeared first on InvezzA stunning late-night edict from the White House has sent a powerful tremor through global markets, as US President Donald Trump abruptly fired Federal Reserve Governor Lisa Cook, amplifying a wave of fear already stoked by his escalating tariff rhetoric. The move, announced in a social media post, was seen as a direct assault on the central bank’s independence, sending investors fleeing from risk and scrambling for safety.This presidential shockwave was not an isolated event but the crescendo of an increasingly aggressive posture. Trump had already put markets on edge by threatening “200% tariffs or something” on China if it restricts rare-earth magnet exports, while also warning of new levies on any country that imposes digital taxes. The one-two punch of a destabilized Fed and renewed trade war fears proved too much for a market already on a knife’s edge.A flight to safety, a sea of redThe reaction across Asian markets on Tuesday was swift and decisive. A sea of red washed over the major bourses, with Japan’s Nikkei 225 sliding 1.01%, Hong Kong’s Hang Seng Index falling 0.44%, and mainland China’s CSI 300 dropping 0.68%, snapping a four-session winning streak. The sell-off, which followed a negative session on Wall Street, was a clear signal of investor anxiety.In a classic flight to safety, the Japanese yen gained 0.3% against the dollar, while gold strengthened to 3,372. The US dollar index, a measure of the greenback’s strength, fell 0.16% on the news of Cook’s termination, a sign of faltering confidence in the stability of US monetary policy.The tariff shadow falls on Dalal StreetNowhere was the presidential pressure felt more acutely than on Dalal Street. After kicking off the week with a rally fueled by dovish signals from the Fed, Indian equities were set for a painful reversal. A draft notice revealing Trump’s plan to slap 50 percent tariffs on Indian goods, citing New Delhi’s purchase of Russian oil, sent a chill through the market before the opening bell.At the open, the Sensex tumbled 258.52 points (0.32%) to 81,377.39, while the Nifty fell 68.25 points (0.27%) to 24,899.50. The sharp reversal wiped out the previous day’s optimism, serving as a stark reminder of how quickly the geopolitical landscape can shift under the current administration.As the dust from the overnight turmoil begins to settle, investors are now bracing for the next potential sources of volatility. All eyes are on the horizon, warily watching for bellwether Nvidia’s upcoming earnings report and the next reading of the Federal Reserve’s preferred inflation gauge, searching for a steady hand in an increasingly unsteady world.The post Asian markets open: Nikkei falls 1.01%, Sensex opens 0.32% lower amid tariff threats appeared first on Invezz