Headline: Bitcoin Hits Three-Month High Amid Mixed Asian Markets and Trump Trade Buzz
Asian markets experienced fluctuations today, with Chinese stocks exerting downward pressure, while bitcoin reached a three-month peak, continuing the momentum dubbed "Trump trades." Amid geopolitical tensions in the Middle East and a tight race in the U.S. presidential elections, gold prices hit another record, closing at $2,727.39 per ounce. The performance of the precious metal reflects the ongoing demand for safe-haven assets due to current global uncertainties.
The initial optimism following Beijing's announcement of stimulus measures at the end of September has now given way to caution. Investors are awaiting more details on the additional financial support. Despite China lowering its benchmark credit rates today, the market had already anticipated this move.
Hong Kong shares fell by 0.6%, while China's blue-chip index oscillated, eventually trading up 0.4%. The Shanghai Composite recorded a 0.36% gain. These mixed signals limited the progress of the MSCI's broadest index of Asia-Pacific shares outside Japan, which showed a slight increase of 0.11%. This comes after a week where U.S. stocks celebrated gains for the sixth consecutive week. Japan's Nikkei index also rose by 0.34%.
Further information on China's stimulus is expected to be delayed. Chaoping Zhu, global market strategist at J.P. Morgan Asset Management in Shanghai, indicated that concrete plans might not be announced until late October or early November, during the National People's Congress Standing Committee meeting.
With the U.S. election on November 5 approaching, financial markets are reacting to the possibility of President Donald Trump's re-election. Trump's policies on tariffs, taxes, and immigration are viewed as inflationary, which could be negative for bonds but beneficial for the U.S. dollar and cryptocurrencies.
Tony Sycamore, market analyst at IG, noted that Trump's lead in key battleground states suggests a strong position for re-election, reflecting in market trends, including the rise in bitcoin value.
The world’s largest cryptocurrency, bitcoin, traded at $69,100, up 0.5% after reaching its highest level since July at $69,487. The cryptocurrency posted a 9.6% gain last week and an 8% increase for the month.
The U.S. dollar index was last noted at 103.46, near its highest level in over two months against a basket of currencies. The pound and euro weakened slightly against the dollar.
In the bond market, the yield on 10-year U.S. Treasury notes rose one basis point to 4.0907%, while the two-year yield stood at 3.95%.
Oil prices saw modest recovery today after last week’s sharp drop. Brent crude futures rose 0.4% to $73.36 per barrel, while U.S. crude climbed 0.43% to $69.52 per barrel.