A look at the day ahead in European and global markets

By Gregor Stuart Hunter, Asia Finance & Markets Breaking News Correspondent

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Stocks and commodities are down, the dollar and bond yields are up, and markets have turned firmly risk-off after U.S. President Donald Trump said he has decided who he will nominate to lead ‌the Federal Reserve.

Kevin Warsh's name has rocketed to the top of the prediction markets after the two met at the White House.

The exterior of the Marriner S. Eccles Federal Reserve Board building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo

While Warsh, a former Fed governor, is seen as an advocate of lower interest rates, he is also considered to be one of the less radical choices among the various candidates that have ‌been raised and perhaps more cautious on heavy monetary stimulus than others.

S&P 500 e-mini futures slid 0.4% and Nasdaq e-mini futures were off 0.5% after Reuters reported Warsh visited the White House for a meeting on Thursday, citing sources familiar with the matter. Bloomberg News later reported ‍the Trump administration was preparing to nominate Warsh as the next Fed chair.

With the market weighing the implications of the pick, MSCI's broadest index of Asia-Pacific shares outside Japan tumbled as much as 1.3%, taking the shine off the ⁠benchmark's best monthly gain of the past three years.

In early European trade, pan-region futures were last ‍up 0.6%, German DAX futures gained 0.5% and FTSE futures climbed 0.2%.

Brent crude was last down 1.4% at $69.74 as ‌oil ‌markets weighed heightened geopolitical risks, after Trump on Thursday signed an executive order declaring a national emergency and establishing a process to impose tariffs on goods from countries that sell or otherwise provide oil to Cuba. Trump also said he was planning to talk to Iran amid rising tensions.

However, there's been no ⁠word yet on what ⁠Trump thought of the "Melania" film premiere on Thursday. Speaking on condition of anonymity, a U.S. official told Reuters that attendance at the big-budget documentary about First Lady Melania Trump was seen as obligatory for cabinet officials, many of whom attended the ‍glitzy event at the Kennedy Center in Washington.

Graphics are produced by Reuters.