Asian and European stocks fell collectively on Tuesday following US President Donald Trump’s announcement of the dismissal of Federal Reserve Board Governor Lisa Cook. The announcement came after Wall Street closed on Monday, where major indices erased part of last week’s gains amid growing hopes of an interest rate cut next month by the Fed. Trump stated on his platform Truth Social that he dismissed Cook due to allegations of mortgage loan fraud. Financial consultant Nigel Green commented that Trump’s decision undermined confidence in the institution underpinning the global financial system. Investors reacted negatively as central bank independence is critical for market stability, and any sign of political influence raises alarms worldwide. European indices such as Germany’s DAX, France’s CAC 40, and the UK’s FTSE 100 declined, alongside futures for the S&P 500 and Dow Jones.

Asian markets including Japan’s Nikkei 225, Australia’s ASX 200, South Korea’s KOSPI, Hong Kong’s Hang Seng, and Shanghai Composite also fell. US stocks closed lower on Monday with the S&P 500, Dow Jones, and Nasdaq all retreating. In energy markets, US West Texas Intermediate crude and Brent crude prices dropped slightly. The US dollar rose against the Japanese yen while the euro remained stable against the dollar.