Stocks diverge as bitcoin hits record high, oil surges
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LONDON: European and Asian stock markets diverged on Thursday and bitcoin hit a record high while oil prices climbed about 2 per cent on the eve of landmark talks between US President Donald Trump and Russian counterpart Vladimir Putin on potentially ending the Ukraine war.
Trump warned of “severe consequences” if his talks with Putin fail , also expectations of a US interest rate cut next month could also spur oil demand.
Brent crude futures rose $1.03, or 1.6pc, to $66.66 a barrel at 1:32 p.m. EDT (1732 GMT), while US West Texas Intermediate (WTI) crude rose $1.14, or 1.8pc, to $63.79.
Most European equity indices climbed after major Asian peers ended lower.
Bitcoin hit a new peak at $124,514.59 in Asian trading, before cooling to around $121,500.
The world’s biggest cryptocurrency is benefitting from expectations that the Federal Reserve will cut US interest rates before 2026, which is weighing on the dollar.
Bitcoin is also winning investor support thanks to strong backing for the cryptocurrency sector from Trump.
“An accommodative stance from the Trump administration combined with expectations of a September Fed rate cut have helped to propel gains for bitcoin,” Victoria Scholar, head of investment at Interactive Investor, noted Thursday.
The pound won some support thanks to expectations that the Bank of England may not follow up its interest-rate cut last week with another reduction this year.
The currency’s rise weighed on London’s FTSE 100 index of top companies, some of which earn in dollars.
Britain’s economy performed better than expected in the second quarter as it weathered the impact of US tariffs and a higher UK business tax, official data showed Thursday. On Friday, Putin and Trump are to discuss ways to settle the Ukraine conflict during a summit in Alaska, the Kremlin said.
The meeting will be the first between sitting US and Russian presidents since 2021, and comes as Trump seeks to broker an end to Russia’s nearly three-and-a-half year offensive.
“It is probably obvious to everyone that the central topic will be the resolution of the Ukraine crisis,” Kremlin aide Yuri Ushakov told reporters.
Published in Dawn, August 15th, 2025
