Bitcoin surged near $100,000 on Thursday as investors bet on a friendly U.S. regulatory shift, while world stocks pulled back slightly but remained near record highs ahead of a key U.S. jobs report.
France’s government lost a confidence vote for the first time since 1962, with far-right and leftist lawmakers joining forces to topple Michel Barnier’s government. This move was widely anticipated by investors, leading to steady gains in the euro, French stocks, and bonds.
U.S. stocks dipped on Thursday, following record closing highs the previous day, which were supported by comments from Federal Reserve Chair Jerome Powell. Powell stated that the U.S. economy is stronger than initially thought in September, allowing policymakers to be more cautious in reducing interest rates further.
Bitcoin’s latest surge was driven by Trump’s announcement of nominating Paul Atkins, who supports crypto and deregulation, to run the Securities and Exchange Commission. Industry experts attributed the price increase to institutionalization and ETF inflows, which have helped drive growth.
Markets are now pricing in an extra U.S. rate cut for 2025, with the implied chance of a December cut lifting from even to around 70%. The closely watched ISM survey showed slower services sector activity in November after posting big gains in recent months.
European stocks rose to a one-month high on Thursday, with bank stocks leading the way, as investors hope for a new budget to be passed in France. The dollar weakened against major currencies, while the euro strengthened 0.7% at $1.058.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2024-12-05