European Markets Set for Lower Open Amid Trump-Fed Clash and French Budget Uncertainty

European stock futures are pointing to a weaker open on Tuesday as investors react to heightened global political tensions. Markets are closely watching U.S. President Donald Trump’s latest move against the Federal Reserve, which has added uncertainty to financial markets worldwide.

Trump announced on social media that he had fired Federal Reserve Board Governor Lisa Cook. Cook immediately responded, stating that Trump had no authority to remove her and that she would not resign. The statement leaves the situation in potential legal territory, fueling concern among investors and prompting declines in Asia-Pacific markets and U.S. futures.

The move comes after months of Trump pressuring the central bank to cut interest rates, including repeated criticism and threats directed at Fed Chair Jerome Powell. Last week, markets had rallied following a speech by Powell, which led investors to anticipate a possible rate cut in September. Trump’s intervention now threatens to undermine that optimism.

In Europe, corporate developments are also affecting market sentiment. Shares of German sportswear company Puma are expected to fall following Monday’s 16% surge, which was driven by reports that its majority shareholder, the Pinault family, may explore a potential sale of the firm. Puma has not commented on the reports, leaving investors cautious.

Political uncertainty in France is another factor weighing on markets. The country’s three main opposition parties announced they would not support a confidence vote called by Prime Minister Francois Bayrou regarding his budget plans for September 8. Paris’s CAC 40 index is expected to open sharply lower. Economic data this week is relatively light, with French consumer confidence out Tuesday and inflation figures from multiple European countries due Friday. U.S. tech giant Nvidia reports earnings on Wednesday, providing another key market catalyst.

Source: cnbc