Tensions Rise in Global Markets Amid U.S. Federal Reserve Dispute

European shares decreased due to tensions between the U.S. administration and the Federal Reserve, with Trump's call for a credit card interest rate cap further affecting banks. The STOXX 600 index fell, influenced by banks like Barclays and HSBC. Notably, AstraZeneca also dropped while Abivax surged.

European shares saw a downturn on Monday, influenced by rising tensions between the U.S. administration and Federal Reserve Chair Jerome Powell, making global markets cautious. President Donald Trump's proposal to cap credit card interest rates at 10% for one year, which he announced without detailed plans, further impacted the banking sector.

The STOXX ‍600 slipped by 0.2% by 0807 GMT, with banks being the largest drag on the index, dropping 1.1%. Among them, Barclays saw a significant fall of 4.5%, reaching its lowest in nearly a month, while HSBC decreased by about 1%.

On top of this, investors gravitated towards safe-haven assets after U.S. threats to indict Powell over congressional comments on a building renovation project. In the corporate arena, AstraZeneca fell nearly 1% post its removal from the Nasdaq-100 index, whereas Abivax surged 22.8%, buoyed by CEO Marc de Garidel's comments on the potential of Abivax's experimental drug for inflammatory bowel disease.

(With inputs from agencies.)