Tom Westbrook provides an update on the European and global markets for the day ahead.
A bitcoin will now cost you six figures.
The cryptocurrency crossing the $100,000 mark seemed inevitable since the election of Donald Trump as President of the United States on a platform favorable to cryptocurrencies. Although this is just a number, it highlights the place that cryptocurrencies have carved out for themselves in modern financial markets.
Some commentators joked that a sales pitch from the kids and grandkids around the Thanksgiving table may have been enough to push bitcoin above the $100,000 mark – after investors has come close to this threshold several times in recent weeks – although the real action has come from large investors and large flows into new bitcoin ETFs.
Bitcoin's breakthrough is also linked to the strength of stocks and the general state of mind. Wall Street indexes hit record highs on Wednesday as confidence in U.S. interest rate cuts grew, while sharp gains in German stocks appeared to defy the gloom in Europe.
In France, the crisis worsened on Wednesday when Parliament adopted a motion of censure against the government, for the first time since 1962. The former centers of stability: Germany, France, Japan and South Korea South are now grappling with political unrest.
French bond futures remained stable in Asia, as did financial markets in South Korea, where a motion was tabled in parliament to impeach President Yoon Suk Yeol following a failed attempt to impose martial law.
The general unease over political upheaval is perhaps part of the appeal of investing in cryptocurrencies, as is the desire to hedge against some of the risks associated with traditional asset classes.
Politics aside, the main data release this week is Friday's U.S. jobs report, a reading of which could challenge market expectations for interest rate cuts. Retail sales in Europe and industrial orders in Germany will also be closely monitored.
Main developments likely to influence the markets on Thursday:
– Fallout from the vote of no confidence in France
– Retail sales in the Eurozone
– German industrial orders
