A Look at the Day Ahead in European and Global Markets

By Tom Westbrook

One bitcoin has now surpassed the six-figure mark.

The cryptocurrency's rise above $100,000 seemed inevitable following Donald Trump's election as the next U.S. president on a crypto-friendly platform. While it is merely a number, it underscores how cryptocurrencies have integrated into modern financial markets.

Some commentators amusingly suggested that perhaps children and grandchildren at Thanksgiving inspired this milestone, given that investors had hesitated around it recently. However, the real momentum came from significant investors and new bitcoin ETF inflows.

This breakthrough also aligns with a rally in stocks and overall positive sentiment. Wall Street indexes hit record highs on Wednesday, fueled by increasing confidence about U.S. rate cuts, while major gains in German stocks appeared to counter the pervasive gloom in Europe.

Political instability grew in France on Wednesday, marked by the parliament passing a no-confidence motion against the government for the first time since 1962. Traditionally stable nations like Germany, France, Japan, and South Korea are now facing political crises.

French bond futures remained steady in Asia, alongside financial markets in South Korea, where a motion was introduced to impeach President Yoon Suk Yeol following a troubled attempt to impose martial law.

This broader unease over political upheaval likely contributes to a growing interest in cryptocurrency, as investors seek to hedge against risks in traditional asset classes.

Politics aside, a key event this week is Friday's U.S. jobs report, where a robust result might challenge expectations for interest rate cuts. The market will also keep an eye on European retail sales data and German industrial orders.

Key Developments Influencing Markets on Thursday:

• Fallout from France's no-confidence vote
• Eurozone retail sales
• German industrial orders

(By Tom Westbrook; Editing by Edmund Klamann)