Economic security

Asia Stocks Drop; Dollar Steady at Four-Month High: Markets Wrap

Asian stocks drifted and the dollar consolidated at a four-month high as investors digested the latest earnings reports and many markets reopened after holidays. U.S. equity futures edged lower after a report the possibility of a subpoena has been raised for President Donald Trump in an ongoing special-counsel investigation.

Ten-year Treasury yields pushed higher, though remained below 3 percent, while risk-off assets such as the yen and gold advanced. Equities declined across the region, with the exception of Australia. Chinese stocks fell as traders returned after a two-day holiday. Wednesday is the only day this week when all the region’s markets trade. FTSE 100 futures advanced, while the pound extended a slide.

Investors and traders have once again become preoccupied by the political situation in Washington. Prosecutors working for Robert Mueller have made clear to Trump’s legal team that the special counsel would consider a subpoena compelling the president to testify before a grand jury if he refuses to participate in a voluntary interview. Market focus is also turning to the Federal Reserve meeting. Investors will watch closely for any signals that policy makers will raise interest rates another three times this year.