US and European stocks surged, the dollar strengthened, and bitcoin hit a record high on Monday, as markets responded to developments in the United States and China.
While Chinese stock markets closed mixed and oil prices declined, the mood in global markets was upbeat, driven by optimism following key events in the US.
Wall Street’s three major indices opened at new record highs, extending last week’s post-election rally. Briefing.com analyst Patrick O’Hare noted, “Last week’s massive post-election rally hasn’t lost momentum yet.” Stocks had surged on hopes that a second Trump administration, backed by a Republican Congress, would introduce business-friendly policies such as deregulation and tax cuts, which investors believe could offset concerns over potential trade tensions.
O’Hare added that the rally was largely fueled by the “carryover” effects of the election results, with investors riding the momentum and fearing they might miss out on further gains. A key factor also was the recent cut in US interest rates by the Federal Reserve, which bolstered sentiment and helped propel stocks higher.
Although the Federal Reserve has not provided clear guidance ahead of its December meeting, markets largely expect further rate cuts, which could continue to support positive sentiment in US stocks, according to Daniela Sabin Hathorn, senior market analyst at Capital.com.
In Europe, stocks also enjoyed strong gains, with the mood lifted by positive economic data and reduced fears about trade tensions with the US. “European markets are enjoying an upbeat start to the week, with uncertainty around US trade relations seemingly taking a backseat,” said Joshua Mahony, analyst at Scope Markets.
However, in China, markets were less enthusiastic after Beijing’s announcement on Friday to raise its local debt ceiling without unveiling new measures to stimulate growth. Despite prior expectations of a major stimulus package, the move failed to live up to the hopes for a “bazooka” stimulus, which analysts had predicted would address slowing inflation and economic stagnation.
China has been facing persistent economic challenges since the end of strict COVID-19 restrictions in late 2022, with efforts such as interest rate cuts and easing housing policies failing to reignite growth. Analysts also raised concerns about the impact of Donald Trump’s planned tariffs on China, which could stoke fears of a renewed trade war.
Chris Weston, head of research at Pepperstone Group, suggested that China might be holding back its fiscal firepower for a more targeted response to potential tariff negotiations with the US. “Many feel that China is keeping its tactical powder dry, anticipating that it may need to respond more strategically as Trump-China tariff talks intensify,” he noted.
In cryptocurrency markets, bitcoin surged to a new all-time high of $82,663.12, driven by speculation that Trump’s policies might ease regulations surrounding digital currencies. “We shouldn’t expect this bullish trend to be interrupted for a long time — probably for the next year,” said Stephane Ifrah, founder of French crypto asset management firm Coinhouse. “The next key level for bitcoin is $100,000.”
Key Figures (as of 1430 GMT):
- New York:
- Dow: +0.6% at 44,246.07 points
- S&P 500: +0.4% at 6,016.35
- Nasdaq: +0.4% at 19,364.12
- Europe:
- London FTSE 100: +0.8% at 8,132.82
- Paris CAC 40: +1.2% at 7,424.16
- Frankfurt DAX: +1.4% at 19,483.42
- Asia:
- Tokyo Nikkei 225: +0.1% at 39,533.32
- Hong Kong Hang Seng Index: -1.5% at 20,426.93
- Shanghai Composite: +0.5% at 3,470.07
- Commodities:
- West Texas Intermediate (WTI): -2.7% at $68.48 per barrel
- Brent North Sea Crude: -2.5% at $72.03 per barrel
- Currencies:
- Euro/Dollar: $1.0658 (down from $1.0724)
- Pound/Dollar: $1.2877 (down from $1.2921)
- Dollar/Yen: 153.68 yen (up from 152.62)
- Euro/Pound: 82.78 pence (down from 82.95 pence)
AFP
