Global shares surged Wednesday as markets reacted positively to President Trump's reassurance that he would not dismiss Federal Reserve chair Jerome Powell. Major European indices, including France's CAC 40 and Germany's DAX, saw significant gains. U.S. futures also indicated a rise. Additionally, U.S. Treasury Secretary Scott Bessent highlighted the unsustainable nature of ongoing tariffs with China, hinting at a possible easing of trade tensions. However, Wall Street strategists warned of volatility in the markets, dependent on Trump's trade negotiations and the recent forecast downgrade by the IMF for global economic growth.
"Of course, markets will continue to listen out for the latest White House rhetoric on tariffs and any hints of upcoming trade deals. As such, market direction will more likely than not continue to be dictated by Trump's latest whims regarding tariffs and trade."
"Trump had previously said he could fire Fed chair Jerome Powell after the Fed paused cuts to short-term interest rates. But Trump told reporters Tuesday, 'I have no intention of firing him.'"
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