In a flurry of market-moving headlines, U.S. President Donald Trump has once again turned the spotlight on the Federal Reserve. Speaking on monetary policy, Trump stated that he believes the Fed should lower interest rates and emphasized his preference for Fed Chair Jerome Powell to be “early or on time” in responding to economic shifts. While reaffirming that he has no intention of firing Powell, Trump added that he wants to see a more proactive approach from the central bank.

These comments, coupled with encouraging words from U.S. Treasury Secretary Bessent, helped lift sentiment across European markets. Investors cheered the dovish tilt, sending European bourses higher. The optimism rippled into the tech sector as well—Tesla (TSLA) surged 6.3% in pre-market trading. The boost came after CEO Elon Musk hinted at stepping back from his vocal support of Dogecoin, following a disappointing earnings report that shook investor confidence.

Currency markets painted a mixed picture for the U.S. dollar, which traded unevenly against global peers. Notably, the Antipodean currencies—namely the Australian and New Zealand dollars—led the charge higher, buoyed by the positive risk tone sweeping across markets.

Meanwhile, bond markets told a more complex story. U.S. and German yields diverged, driven in part by trade updates and President Trump’s fresh round of remarks on the Fed. The gap reflects growing uncertainty over global policy alignment and inflation expectations.

In commodities, industrial metals climbed as investor optimism grew. Spot gold, often a haven in times of fear, gave back some of its risk premium amid the more buoyant market environment.

As traders digest this mix of political influence and economic signaling, all eyes remain on central banks and corporate leaders to see if the current tone of cautious optimism holds.