Global stocks mixed as bitcoin surges

Published December 12, 2017

Global stocks were mixed on Monday, with major United States indices ending at fresh records as bitcoin futures surged in their debut on a major exchange.

The Dow and S&P 500 edged to fresh records amid gains by technology shares as investors brushed off concerns over an explosion early in the day near Times Square that injured three and halted activity in key New York transportation hubs for several hours.

In Europe, bourses played the waiting game ahead of a series of central bank meetings, including a two-day session at the US Federal Reserve that is expected to conclude on Wednesday with a decision to lift interest rates.

“It's been another quiet start to trading in what is otherwise going to be a very busy week in financial markets, with a number of central banks scheduled to make interest rate announcements,” said Oanda analyst Craig Erlam.

Frankfurt and Paris both slipped around 0.2 per cent, while London bucked the trend, showing a gain of around 0.8pc.

Most analysts expect the US central bank's policy-setting Federal Open Market Committee to lift interest rates again.

“The Fed will no doubt provide markets with a central focus this week, where the FOMC are expected to come good on their promise of three rate hikes for 2017,” said IG analyst Joshua Mahony.

Bitcoin marches higher

Even with the US records, stocks were overshadowed by the launch of bitcoin futures on the Cboe, the first mainstream exchange to offer trading in the controversial digital currency.

Bitcoin futures for January delivery finished at $18,850. at 2115 GMT, a bit below session peaks but well above $15,000, the initial price when the Chicago Board Options Exchange (Cboe) launched the platform on Sunday night.

“We are quite pleased,” Cboe chief Ed Tilly said in an interview with AFP several hours after the launch. “We have been anticipating a slow and steady build. I expect to see that continuing.”

Among individual stocks, Apple jumped 2.0 per cent following the acquisition of song recognition app Shazam, which is seen as a fresh bid to secure an edge in the intensifying battle of streaming services.

Financial terms were not disclosed, but leading technology news sites put the deal at around $400 million. Disney rose 2.5pc as its animated comedy “Coco” again led the weekend box office list.

Disney also is expected to get a lift from next weekend's release of “Star Wars: The Last Jedi”, predicted to net a mammoth $200mn in its opening weekend.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

IMF’s unease
Updated 24 May, 2024

IMF’s unease

It is clear that the next phase of economic stabilisation will be very tough for most of the population.
Belated recognition
24 May, 2024

Belated recognition

WITH Wednesday’s announcement by three European states that they intend to recognise Palestine as a state later...
App for GBV survivors
24 May, 2024

App for GBV survivors

GENDER-based violence is caught between two worlds: one sees it as a crime, the other as ‘convention’. The ...
Energy inflation
Updated 23 May, 2024

Energy inflation

The widening gap between the haves and have-nots is already tearing apart Pakistan’s social fabric.
Culture of violence
23 May, 2024

Culture of violence

WHILE political differences are part of the democratic process, there can be no justification for such disagreements...
Flooding threats
23 May, 2024

Flooding threats

WITH temperatures in GB and KP forecasted to be four to six degrees higher than normal this week, the threat of...