Asian equities rose on Monday, while the US dollar dipped, as investors reacted to news that the US Justice Department had subpoenaed the Federal Reserve. The move, confirmed by Fed Chair Jerome Powell, has raised concerns over the independence of the US central bank. Powell stated that the subpoenas, related to his Senate testimony in June, were part of a pressure campaign by US President Donald Trump for a rate cut.
The development comes on the heels of a soft US jobs report, which showed 50,000 new positions created in December and an unemployment rate of 4.4%. The dollar fell 0.2% against major peers, while gold surged 1.5% as investors sought safe havens amidst political uncertainty. Asian markets, including Hong Kong, Shanghai, and Seoul, posted gains in early trade, tracking Wall Street’s record close on Friday.
Oil prices experienced a slight dip but largely held steady after a rally last week, driven by protests in Iran and the US seizure of Venezuela’s crude supplies. The situation in Iran has drawn warnings from President Trump, who has cautioned against harming demonstrators and is considering potential military action. Trump also announced that Iran’s leadership has sought to negotiate, and a meeting is being arranged.
Key market figures include the Hang Seng Index, which rose 0.4% to 26,327.33, and the Shanghai Composite, which also gained 0.4% to 4,138.32. The euro and pound sterling both strengthened against the dollar, while West Texas Intermediate crude oil fell 0.1% to $59.06 per barrel.
The geopolitical tensions and market developments are being closely watched by investors, who are seeking clarity on the potential impact of the US Justice Department’s move on the Federal Reserve’s independence. As the situation continues to unfold, market volatility is expected to remain a key concern for investors. The next steps in the US-Iran standoff and the potential implications for global markets will be closely monitored in the coming days.
