Former US Federal Reserve President Kevin Warsh attends the Spring Meetings of the International Monetary Fund (IMF) and World Bank at IMF Headquarters in Washington, DC, USA, on Friday, April 25, 2025.
Tierney L. Cross | Bloomberg | Getty Images
The market got what it wanted.
Investors held their breath when President Donald Trump nominated Kevin Warsh to lead the Federal Reserve. Markets took comfort in Mr. Warsh’s central bank experience (he served from 2006 to 2011, during the height of the global financial crisis) and the recognition that he would not always be at the mercy of President Trump.
“Kevin Warsh’s nomination as Fed Chairman is exactly what the market expected, as he is well known to market participants as a solid figure and is expected to maintain the central bank’s independence, which is important to the market,” said Richard Saperstein, chief investment officer at Treasury Partners.
of USD That trend intensified following President Trump’s announcement, which signaled the market’s approval of Warsh’s credibility and autonomy.
However, risk assets decreased. Major U.S. indexes closed lower on Friday due to weakness in tech stocks.
Commodities faced severe declines. spot gold and spot silver Gold, considered a safe-haven asset for hedging U.S. volatility, fell nearly 9% and 31.4%, respectively, on Friday, the latter’s worst day since March 1980. Both precious metals continued to rise during Asian hours on Monday, with gold down about 8% and silver down about 10.5% as of 2:30pm Singapore (1:30am ET).
Cryptocurrencies also fell sharply, with Bitcoin trading around $75,103, falling below $80,000 for the first time since April.
The impact on Asian markets was equally severe. Korean Kospi According to an official memo, the stock price fell more than 5% and trading was suspended. hong kong Hang Seng Index With a decrease of nearly 3%, Japan Nikkei Stock Average It decreases by about 1%.
Oil prices also fell, with global benchmark Brent crude falling 5.3% and US crude oil falling 5.5%. But these price movements were more a result of Trump telling reporters on Saturday that Iran was in “serious talks” with the United States, allaying concerns about an oil supply shock.
Over the coming week, tech giants Alphabet and Amazon are scheduled to report earnings on Wednesday and Thursday, respectively, with investors hoping that positive press coverage could change the market’s risk-off sentiment.
What you need to know today
Kevin Warsh explained. Warsh, who served at the Fed from 2006 to 2011, played a key role in designing and implementing programs to stabilize credit markets. But Mr. Warsh emerged from this era as a critic of the Fed.
U.S. House Speaker Mike Johnson said Sunday he is “confident” the government shutdown will end by Tuesday. He added that he believed he had the votes to end the partial government shutdown by Tuesday.
Factory activity in China is increasing at the fastest pace since October. As expected, the rating dog China Comprehensive Manufacturing PMI (seasonally adjusted) compiled by S&P Global rose to 50.3 from the previous month’s 50.1. This is the highest level since October, when a private survey showed a score of 50.6.
Asia-Pacific markets fell on Monday. Other regional indexes also fell as South Korean stocks plunged and trading was suspended. Major US indexes fell on Friday, S&P500 It was the third consecutive day of losses, but it was still an increase for January.
(PRO) Focus on Alphabet and Amazon’s earnings. In a busy earnings week, Google’s parent company plans to release results after the bell on Wednesday. Amazon’s The sale will take place after the market closes on Thursday. CNBC’s Fred Imbert breaks down what you can expect.
And finally…
Why is the catastrophe bond market so hot right now?
According to specialist data provider Artemis.bm, catastrophe bond issuance will rise to $25.6 billion in 2025, 45% higher than 2024’s record of just under $17.7 billion. First created in the 1990s, CAT bonds refer to a type of financial product designed to raise funds for insurance companies in the event of a natural disaster such as a hurricane or earthquake.
The emergence of this asset class as an increasingly mainstream financial product comes at a time when the climate crisis is increasing the frequency and intensity of extreme weather events.
— Sam Meredith
