“Morning Bid: Bitcoin returns with a bang as stocks teeter on shaky ground”
Investors in Europe and around the world are likely to be feeling anxious today, as they face a combination of earnings reports, a busy economic calendar, and concerns over the Israel-Hamas war. Meanwhile, bitcoin prices have reached an 18-month high.
Asia-Pacific shares outside Japan experienced significant volatility, hitting an 11-month low before recovering slightly. European bourses are expected to open lower.
Treasuries are also making headlines, with yields on 10-year notes briefly reaching 5% before falling back. The decline in yields has put pressure on the US dollar and brought some relief to the yen.
Investor attention will be on flash PMIs from Britain, France, the euro zone, and the United States, which will provide insights into the economic outlook ahead of the central bank meetings, starting with the ECB meeting on Thursday.
Bitcoin prices have surged due to increasing speculation about the possibility of a bitcoin exchange-traded fund.
In corporate news, tech giants Microsoft and Google-parent Alphabet are set to report earnings later today. Investors will also be closely watching earnings from Barclays and French luxury group Kering, amid concerns of slowing demand.
In the commodities market, London cocoa futures on ICE are expected to reach a fourth successive record high, as traders bet that shrinking demand will not be enough to offset a severe downturn in supply.
Overall, it looks set to be a busy and potentially volatile day for investors as they navigate a range of factors influencing the global markets.