European stocks close lower after global markets shaken by Trump-Powell tensions

European stocks closed lower on Wednesday, reversing gains earlier on in the session after a White House official said that President Donald Trump will likely fire Federal Reserve Chair Jerome Powell soon.

The pan-European Stoxx 600 closed 0.6% lower. Technology stocks led the losses, slumping 2.2%, while the insurance sector was a standout gainer climbing 0.5%.

“The President asked lawmakers how they felt about firing the Fed Chair. They expressed approval for firing him. The President indicated he likely will soon,” a White House official told CNBC, preferring to remain anonymous to speak candidly on the issue.

When subsequently asked about his view on firing Powell, Trump said during a White House press event: “I don’t rule out anything but it’s highly unlikely.”