Equities rally endures, Bitcoin passes $81K

by Catherine Bosley and Margaryta Kirakosian

US futures and European stocks advanced as Donald Trump’s victory in the US presidential race continued to boost appetite for equities. 

The Stoxx 600 index added 0.9%, with all industry groups in the index climbing. Futures pointed to gains of 0.3% at the open for the S&P 500, which hit its 50th record high of the year on Friday. Bitcoin rallied past $81,000 for the first time on the prospect of a Republican-led congress with pro-crypto lawmakers. US bond markets are closed for the Veteran’s Day holiday. 

Markets shrugged off a weak session in Asia, after China’s debt swap program disappointed investors hoping for more fiscal stimulus. Traders’ focus this week will be on US inflation data and its potential impact on the Federal Reserve’s easing trajectory.

“The markets are already well into pricing a ‘Trump trade’ that began in September, but the year-end rally has more room to run,” said Jason Draho, Head Asset Allocation Americas, UBS Global Wealth Management. 

Federal Reserve Bank of Minneapolis President Neel Kashkari indicated at the weekend that the central bank could ease rates less than previously expected amid a strong US economy. Kashkari emphasized, however, that it’s too early to determine the impact of Trump’s policies.

China’s CSI 300 benchmark fell as much as 1.4%, before erasing losses to close with modest gains.

“There will be a lot more volatility” for Chinese equities, Ecaterina Bigos, chief investment officer for Asia excluding Japan at AXA Investment Managers, told Bloomberg Television. While policy announcements on matters such as real estate have helped sentiment, “the fundamental picture has not changed yet. We haven’t seen that in earnings yet.” 

Oil pared losses to trade flat after China’s latest efforts disappointed markets. Iron ore declined toward $100 a ton. 

Key events this week:

• Japan current account, Monday
• Denmark CPI, Monday
• Norway CPI, Monday
• United Nations climate change conference, COP29 begins, Monday
• Germany CPI, Tuesday
• UK jobless claims, unemployment, Tuesday
• Fed speakers including Christopher Waller, Tuesday
• Japan PPI, Wednesday
• Eurozone industrial production, Wednesday
• US CPI, Wednesday
• Australia unemployment, Thursday
• Eurozone GDP, Thursday
• US PPI, jobless claims, Thursday
• Reserve Bank of Australia Governor Michele Bullock speaks, Thursday
• Fed Chair Jerome Powell speaks, Thursday
• ECB President Christine Lagarde speaks, Thursday
• BOE Governor Andrew Bailey speaks, Thursday
• Japan GDP, industrial production, Friday
• China retail sales, industrial production, fixed-asset investment, Friday
• UK GDP, industrial production, trade balance, Friday
• US retail sales, Friday
• Alibaba earnings, Friday

Some of the major moves in markets:

Stocks

• The Stoxx Europe 600 rose 1.1% as of 8:31 a.m. London time
• S&P 500 futures rose 0.3%
• Nasdaq 100 futures rose 0.4%
• Futures on the Dow Jones Industrial Average rose 0.2%
• The MSCI Asia Pacific Index fell 0.9%
• The MSCI Emerging Markets Index fell 0.7%

Currencies

• The Bloomberg Dollar Spot Index rose 0.3%
• The euro fell 0.3% to $1.0684
• The Japanese yen fell 0.8% to 153.82 per dollar
• The offshore yuan was little changed at 7.2070 per dollar
• The British pound fell 0.2% to $1.2895

Cryptocurrencies

• Bitcoin rose 1.5% to $81,110.57
• Ether fell 1.1% to $3,136.34

Bonds

• The yield on 10-year Treasuries was little changed at 4.30%
• Germany’s 10-year yield declined two basis points to 2.34%
• Britain’s 10-year yield was little changed at 4.44%

Commodities

• Brent crude rose 0.3% to $74.07 a barrel
• Spot gold fell 0.6% to $2,669.03 an ounce

This story was produced with the assistance of Bloomberg Automation.

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