European stock markets showed limited movement on Monday, following a broad rally in Asia, while US futures dipped amid reports that the Department of Justice has opened a probe into Federal Reserve Chair Jerome Powell.
Powell said the subpoenas relate to his testimony concerning the $2.5 billion renovation of two Fed office buildings. President Donald Trump denied prior knowledge of the investigation, dismissing suggestions it was intended to influence interest rate decisions. “No. I wouldn’t even think of doing it that way,” Trump told NBC. He has previously criticized the building upgrades as excessive and has indicated he may name a replacement for Powell before his term ends in May. Trump has also sought to remove Fed governor Lisa Cook, raising questions about central bank independence.
Despite the uncertainty, investors pushed gold and other safe-haven assets to record levels. Gold climbed over $4,600 an ounce, up more than 2.5%, while silver neared $85, rising over 7%. Copper futures also gained, jumping 2.52% to $6.051 per pound. The surge in precious metals has been linked in part to unrest in Iran, where nationwide protests against Supreme Leader Ayatollah Ali Khamenei have entered their third week. Reports indicate more than 500 people have been killed during the demonstrations. Trump said he would intervene if Iranian authorities continue to target protestors.
US stock futures fell ahead of the trading session, with S&P 500 contracts down 0.53%, Dow Jones futures declining 0.67%, and Nasdaq contracts slipping 0.71%. Last week, US equities reached record highs, with the S&P 500 closing at 6,966.28, the Dow at 49,504.07, and the Nasdaq at 23,671.35. While December employment data showed weaker job growth than expected, the unemployment rate improved, leaving markets uncertain about the pace of future Fed rate cuts. Investors are awaiting updates on US consumer inflation on Tuesday and wholesale prices on Wednesday.
Currency markets showed moderate movement. The dollar fell slightly to 157.8180 Japanese yen, while the euro rose 0.49% to $1.1691. Oil prices gave back early gains, with US benchmark crude at $58.91 per barrel and Brent crude at $63.18.
In Europe, Germany’s DAX remained flat at 25,358.17, France’s CAC 40 was little changed at 8,359.71, and Britain’s FTSE 100 edged up to 10,127.05. Asian markets were stronger, with Hong Kong’s Hang Seng climbing 1.44% to 26,608.48 and Shanghai Composite rising 1.09% to 4,165.29. South Korea’s Kospi gained 0.84% to 4,624.79, Australia’s S&P/ASX 200 added 0.48% to 8,759.40, and Taiwan’s Taiex advanced 0.92%.
The mixed global performance highlights market sensitivity to US political developments, geopolitical tensions, and ongoing economic support measures across Asia.
