But Wall Street rebounded from sharp losses the previous day, pulling Europe’s main stock markets higher as well as the region’s trading resumed after a long weekend break for Easter.
Asian indexes closed mixed, while the dollar diverged against major rivals and oil prices firmed.
“Looking at today’s rebound for equities, you might be forgiven for thinking that financial markets have forgotten all about Trump’s threats to fire Powell,” said IG analyst Chris Beauchamp.
Panicked Wall Street investors dumped US assets on Monday, with all three main indexes ending down around 2.5 percent, after Trump took another swipe at Federal Reserve chair Jerome Powell.
The president last week criticised Powell over the latter’s warning that the sweeping levies would likely reignite inflation.
While that raised eyebrows, Trump sent shivers through markets on Monday by again calling on Powell to make pre-emptive cuts to US interest rates and calling him a “major loser” and “Mr Too Late.”
The Republican tycoon said on his Truth Social platform that there was “virtually” no inflation, claiming energy and food costs were well down and pointed to the several interest rate reductions by the European Central Bank.
The outbursts have fanned concern that Trump is preparing to oust Powell. Trump’s top economic adviser Kevin Hassett said on Friday that the president was looking at whether he could do so.
But Wall Street rebounded strongly on Tuesday, largely making up Monday’s losses. (AFP)
