Tom Westbrook’s view of the day ahead in European and global markets
One bitcoin will now cost you six figures.
A breakout of the cryptocurrency above the $100,000 mark seems inevitable since the election of Donald Trump as the next US president on a crypto-friendly platform. Although it’s just a number, it highlights how cryptocurrencies have earned a place in modern financial markets.
Some commentators have joked that maybe a commercial of kids and grandkids around the Thanksgiving table is enough to top $100,000 — after investors have come close to that mark multiple times in recent weeks — though the real moves have come from big investors and big flows into new bitcoin. ETFs.
A breakout also correlates with stock strength and broader sentiment. Wall Street indexes hit record highs on Wednesday as confidence about a U.S. interest rate cut rose, while sharp gains in German stocks appeared to defy the gloom enveloping Europe.
The crisis in France deepened on Wednesday when the parliament voted no confidence in the government for the first time since 1962. Former centers of stability in Germany, France, Japan and South Korea are now grappling with political turmoil.
French bond futures were steady in Asia, as were financial markets in South Korea, where parliament launched a motion to impeach President Yoon Suk Yeol over a failed attempt to impose a state of emergency.
A broader unease with political turmoil may be part of the lure behind investing in cryptocurrencies, as well as a desire to hedge against some of the risks in traditional asset classes.
Politics aside, the main data release this week is Friday’s US jobs report, where a strong reading could challenge market expectations for a rate cut. Data on European retail sales and German industrial orders will also be closely watched.
Key events that could affect the markets on Thursday:
– Consequences of the vote of no confidence in France
– Retail in the eurozone
– German industrial orders
(Author: Tom Westbrook; Editing: Edmund Klamann)
