Global markets showed positive momentum on Thursday, driven by another record rally on Wall Street. Meanwhile, Bitcoin soared past $100,000 following news that President-elect Donald Trump nominated crypto advocate Paul Atkins as the new head of the Securities and Exchange Commission (SEC).
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This mix of strong equity performance and the dramatic rise of cryptocurrencies marked a pivotal moment for investors navigating economic uncertainty and geopolitical turbulence.
Global Stock Market Highlights
In Europe, key indexes saw broad gains:
- France’s CAC 40 climbed 0.6% to 7,346.64 despite political drama as far-right and left-wing lawmakers joined forces on a no-confidence motion that resulted in the resignation of Prime Minister Michel Barnier and his Cabinet.
- Germany’s DAX added 0.4%, reaching 20,303.05, buoyed by strong performances in industrial and technology sectors.
- Britain’s FTSE 100 edged up 0.1%, closing at 8,346.63, as investors digested inflation data and the ongoing strength of the pound.
In the U.S., futures for the S&P 500 were up less than 0.1%, while the Dow Jones Industrial Average remained flat. On Wednesday, Wall Street continued its record-breaking streak, with the S&P 500 notching its 56th record high of the year, climbing 0.6%. The Dow industrials rose 0.7%, and the tech-heavy Nasdaq composite surged 1.3%.
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Bitcoin’s Historic Surge
Bitcoin grabbed headlines globally, surging past the $100,000 milestone late Wednesday U.S. time. The cryptocurrency’s rapid ascent—from $69,374 on Election Day, November 5, to $102,886 on Thursday—was fueled by Trump’s nomination of Paul Atkins, a known advocate for crypto-friendly regulations, as SEC chairman.
The market viewed Atkins’ nomination as a potential turning point for U.S. cryptocurrency policy, potentially ushering in a more favorable regulatory environment for digital assets. Analysts see Bitcoin’s rise as reflective of growing confidence in the sector’s mainstream adoption under pro-crypto leadership.
Asian Market Dynamics
In Asia, trading presented a mixed picture:
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- Japan’s Nikkei 225 rose 0.3% to close at 39,395.60, with gains driven by technology stocks and robust retail sales data.
- Australia’s S&P/ASX 200 ticked up 0.2% to 8,474.90, buoyed by mining and energy stocks amid rising commodity prices.
- South Korea’s Kospi, however, tumbled 0.9% to 2,441.85, extending its losses after a 1.4% drop the previous day. This decline came as President Yoon Suk Yeol faced impeachment proceedings following a controversial and short-lived martial law declaration.
- Hong Kong’s Hang Seng dipped 0.9% to 19,560.44, weighed down by property sector challenges and geopolitical concerns, while China’s Shanghai Composite edged up 0.1% to 3,368.86.
Other regional markets saw modest gains, with India’s Sensex rising 0.9% and Taiwan’s Taiex inching up 0.1%.
What’s Driving U.S. Markets?
Investors are closely watching Friday’s U.S. jobs report, which will provide insights into hiring and firing trends from the past month. Expectations are building that the Federal Reserve will cut its main interest rate again during its next meeting in two weeks, as part of ongoing efforts to support the labor market.
The Fed has been steadily easing interest rates since September, reversing earlier hikes that brought rates to a 20-year high. However, Trump’s election victory has injected uncertainty into these plans. His policy agenda—emphasizing higher tariffs and potential trade disputes—could trigger inflationary pressures, forcing the Fed to reconsider its rate-cutting trajectory.
Energy and Currency Movements
Oil prices showed slight gains in early trading:
- U.S. benchmark crude rose 15 cents to $68.69 per barrel.
- Brent crude, the international standard, added 13 cents, reaching $72.44 per barrel.
In currency markets, the U.S. dollar weakened slightly against the yen, slipping to 150.23 yen from 150.62 yen. The euro saw a small uptick, trading at $1.0529 compared to $1.0510.
Key Takeaways
The combination of strong stock market performance, Bitcoin’s dramatic rise, and geopolitical shifts in regions like France and South Korea paints a complex picture for global investors. While equity markets continue to ride a wave of optimism fueled by easing inflation fears and favorable policies, the rapid ascent of cryptocurrencies signals renewed investor appetite for alternative assets.
As markets await critical economic data, such as the U.S. jobs report, and monitor the evolving implications of Trump’s policy agenda, the coming weeks are likely to set the tone for 2025. For now, optimism in equities and crypto appears to dominate the narrative, but the interplay of geopolitical risks and central bank actions remains a critical factor to watch.
