BANGKOK — U.S. futures sank Monday after Federal Reserve Chair Jerome Powell said the Department of Justice had served the central bank with subpoenas.
Markets in Europe were mostly lower after a broad rally in Asia.
The threat of a criminal indictment over Powell’s testimony about the Fed’s building renovations is the latest escalation in President Donald Trump’s feud with the Fed. Trump has criticized the $2.5 billion renovation of two office buildings as excessive.
Markets appeared to take the news in stride, although gold and other precious metals often used as a hedge in times of uncertainty climbed.
The future for the S&P 500 declined 0.7% and that for the Dow Jones Industrial Average fell 0.6%. The future for the Nasdaq composite index slipped 1.1%.
In Germany, the DAX was nearly flat at 25,265.46, while the CAC 40 in Paris shed 0.5% to 8,319.03. Britain’s FTSE 100 edged 0.1% lower, to 10,114.82.
In Asian trading, Hong Kong’s Hang Seng gained 1.4% to 26,608.48, while the Shanghai Composite index jumped 1.1% to 4,165.29 after reports that Chinese leaders were preparing more help for the economy.
Tokyo’s markets were closed for a holiday.
In South Korea, the Kospi added 0.8% to 4,624.79, while Australia’s S&P/ASX 200 gained 0.5% to 8,759.40.
Taiwan’s Taiex gained 0.9%.
On Friday, U.S. stocks hit records following a mixed report on