Investors are increasingly concerned about the independence of the Federal Reserve under Donald Trump's leadership. US assets are in decline, the dollar has fallen to its lowest level against the euro in three years, and traditional safe havens like the Japanese yen and Swiss franc are gaining ground. Meanwhile, gold continues to rally, reaching a new record high. South Korea's stock market is set to be included in the developed markets index. European markets remain closed for Easter Monday.

Investor confidence wanes: markets tumble amid Trump's pressure on Fed

Asian stock markets and US futures began the week with sharp losses, reflecting growing unease over political pressure on the Federal Reserve and rising trade risks. At the center of attention is President Donald Trump's sharp criticism of Fed Chair Jerome Powell. According to sources, the White House has seriously considered the possibility of Powell's dismissal, thus casting doubt on the Fed's independence and triggering waves of volatility across global markets.

No holiday calm for markets

Despite the Easter holidays, which kept most European trading floors closed on Friday and Monday, a wave of instability swept through global exchanges. Low liquidity only intensified the volatility. Futures on the S&P 500 fell 0.75%, while Nasdaq futures dropped 0.8%. In Asia, Japan's Nikkei and Taiwan's TWII slid by over 1%, while Chinese markets, against the backdrop of general negativity, managed a modest gain.

Trade threats and political pressure hit USD

Trump continues to stir anxiety in financial markets through his public statements and tariff policies. Investors are increasingly questioning the strength of the dollar and the appeal of U.S. assets, long viewed as a safe harbor in turbulent times. Markets reacted particularly strongly to Trump's renewed rhetoric targeting the Fed and its leadership. This intensifying pressure has become a key driver of eroding trust.

Currency swings: USD drops as gold and franc surge

Amid widespread risk aversion, the US dollar weakened significantly. The euro hit a three-year high, the yen strengthened to levels not seen since September, and the Swiss franc soared to a ten-year peak against the dollar. Meanwhile, gold, the classic refuge in times of uncertainty, surged to a new all-time high, signaling that investors are seeking shelter from the financial storm on the horizon.

Fed's independence under threat? Experts sound alarm

Chicago Fed President Austan Goolsbee voiced concern in a Sunday interview about the growing political pressure on the central bank. He stressed the critical importance of maintaining the Fed's ability to shape monetary policy without external interference. According to Goolsbee, the Fed's reputation as the world's leading central bank rests on its independence and any attempts to undermine this principle could have long-term consequences for economic stability and investor confidence.

Markets react to jitters: yields swing sharply

Amid growing political tension, bond markets are showing mixed signals. The yield on 10-year US Treasury notes rose by 3.5 basis points during Asian trading. Meanwhile, the more rate-sensitive two-year yields dropped by 3.6 basis points.

This divergence reflects rising expectations of a potential interest rate cut particularly following Donald Trump's mounting pressure on the Federal Reserve leadership.

Eyes on giants: reporting period kicks off

This week, Wall Street's focus turns to earnings reports from leading tech players. Among the most anticipated: Alphabet, chipmaker Intel, and electric car giant Tesla.

2025 has been a brutal year for the so-called "Magnificent Seven" stocks: Alphabet shares are down about 20%, and Tesla has lost nearly 40% of its market value. Investors will be closely analyzing the quarterly results for any signs of a trend reversal.

Trade games continue: uncertainty weighs on business

Companies are still navigating the shifting US tariff landscape. Despite a temporary suspension of some major tariffs, the White House maintains a hardline stance and continues to exert pressure in international trade negotiations.

Particularly strained are ties with China, the world's second-largest economy. New rounds of talks are progressing slowly, with little clarity on a sustainable deal. The business community is watching with increasing concern, as any further escalation could disrupt supply chains and trigger new waves of market volatility.

South Korea sounds alarm: exports plunge sharply

Fresh data from South Korea shows a sharp drop in export volumes in early April. It is a worrying sign that US tariff measures are starting to take a more tangible toll on global trade.

Seoul and Washington are preparing for another round of talks this week, but market participants remain skeptical as uncertainty remains high, and key disagreements persist.

US-China tensions resurface

On Friday, President Trump said that private discussions between the US and China were in progress, despite the ongoing trade tension. However, China's diplomatic posture was markedly more reserved: the Chinese ambassador to the US made it clear that no constructive dialogue would take place unless Washington showed a proper level of respect.

This sharp contrast in rhetoric highlights the deep divisions that remain and the still-high risk of a renewed escalation.

Gold sets another record high

Gold continues its steady climb. On Monday, the precious metal surpassed the $3,370 mark per ounce, setting a new all-time high. A daily gain of more than 1% pushed its year-to-date return to an impressive 26%.

Amid rising geopolitical instability and currency market volatility, investors are increasingly turning to safe-haven assets and gold once again proves its status as a store of value.

Oil slips as Iran and US move closer

Oil prices declined following reports of progress in nuclear negotiations between Tehran and Washington. The prospect of partially normalized relations has eased concerns over supply disruptions from one of the key Middle Eastern producers.

Brent futures dropped 1.75% to $66.77 per barrel, while U.S. WTI fell by the same margin to $63.55. It is a reminder of how swiftly geopolitics can reverse the direction of price movements.

Crypto rallies: BTC hits new highs again

Amid broader instability in traditional markets, investors are also eyeing digital assets. On Monday, Bitcoin rallied nearly 3%, reaching $87,515, the highest level since the beginning of the month.

The crypto market remains a volatile yet attractive alternative for those seeking both protection from inflation and opportunities for speculative gains.

South Korea on the verge of upgrade: market could attain developed status

Seoul is making confident strides in redefining its investment image. On Monday, a representative of the South Korean financial regulator said the likelihood of the country's stock market being reclassified as developed is extremely high.

Such a move could open new doors for international investors and strengthen South Korea's position as a key player in the global financial landscape.

Despite being Asia's fourth-largest economy with advanced infrastructure, technological dominance, and a resilient macroeconomic environment, South Korea is still classified as an emerging market by MSCI.

This disconnect has long raised eyebrows among analysts and global investors, who view Korean assets as offering the stability and maturity typical of developed markets.

Short-selling ban lifted: step toward market openness

One of the major hurdles to reclassification had been the ban on short selling. But last month, for the first time in five years, South Korea fully lifted the restriction across the entire equity market, removing a key obstacle often cited by MSCI and major foreign investors.

The move was widely seen as a signal of the country's commitment to transparency, competitiveness, and openness—all critical criteria for inclusion in the developed market category.

Crucial month ahead: MSCI prepares classification update

Now all eyes are on MSCI's June index review. As per MSCI's standard procedure, markets undergoing reclassification typically enter a watchlist phase that lasts one to two years.

If South Korea makes it onto that shortlist, it will be a major step toward formal recognition potentially unlocking hundreds of billions of dollars in passive investments that automatically track MSCI indices.