The world’s stock markets struggled for direction yesterday as investors paused for breath, while bitcoin spiked to a dizzying record above $15,000 on frenzied speculative buying, dealers said.
Across Europe, London’s FTSE 100 fell 0.4% to 7,320.75 points at close; Frankfurt’s DAX 30 was up 0.4% to 13,045.15, while Paris’ CAC 40 rose 0.2% to 5,383.86.
Wall Street rose modestly, with the Dow adding 0.3% and the tech-heavy Nasdaq Composite climbing 0.7%.
Analysts said investor sentiment was still hamstrung by coming political battles surrounding a US tax reform plan.
Much focus, meanwhile, was on bitcoin which set a fresh record as investors’ jaws dropped at the cryptocurrency’s meteoric rise.
Bitcoin, which is not traded on traditional currency market, powered to a fresh high of $15,969.99, before falling back according to Bloomberg data.
The controversial virtual unit has soared more than 50% in just one week, but analysts warn that the snowballing rally could melt in the run-up to Christmas.
“While the European stocks indices try and shake off yesterday’s politically-driven bearish trading, bitcoin — seemingly unencumbered by anything in the real world — has continued its astonishing march,” Spreadex trader Connor Campbell told AFP. “The rolling wave of speculation has given bitcoin a huge amount of momentum, a snowball effect that may be melted when the cryptocurrency’s futures are launched in a few weeks.”
“Bitcoin is continuing to travel at break-neck speed,” CMC Markets analyst David Madden told AFP.
“The alternative investment is proving to be very popular at a time when traditional assets like gold are under pressure,” he added, noting the precious metal had touched a four-month low.
Bitcoin received a major boost in October when exchange giant CME Group announced it would launch a futures marketplace for bitcoin, which has not been listed on a major bourse before.
Tokyo stocks rallied yesterday after three days of losses, but regional Asian markets were dogged by political concerns, the latest being US President Donald Trump’s controversial decision to recognise Jerusalem as Israel’s capital.
After a blockbuster year for most global markets — helped by bets on Trump’s promise to cut taxes and ramp up spending — geopolitical worries and dealers winding down for the year’s end have put them on course for a painful December.
Trump’s Jerusalem decision drew swift global condemnation and fanned fears about the overall prospects for stability in the Middle East.
That followed news this week that one of the president’s former close advisers had admitted lying to investigators in a probe into Russian meddling in the US election, bringing it closer to the White House.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Oil and gas prices slide due to increased production
Britain’s Cuadrilla starts fracking for gas after 7-yr pause
Sears goes bankrupt, deserted by shoppers and mired in debt
Pakistan govt policies may discourage investors
HNA exploring options to sell IT unit Pactera
Japan PM pledges to go ahead with sales tax hike in 2019
BP criticises price controls after India cuts cost of fuel
Asia markets begin week on the back foot on plethora of risks
China unlikely to let yuan weaken past 7 per dollar