LONDON – Major stock markets mostly rose yesterday as traders welcomed Donald Trump’s pick for Treasury secretary, while bitcoin’s push to US$100 000 ran out of steam after coming within a whisker of the mark last week.
The equity gains came before key US data over coming days, which could provide fresh clues about the Federal Reserve’s plans for interest rates. This came amid expectations the next president’s planned tax cuts and tariffs will reignite inflation, tempering bets on reductions to borrowing costs. The dollar was down against main rivals yesterday after recent strength caused by interest rates staying high for longer.
Equity investors gave the thumbs-up to news that billionaire investor Scott Bessent would lead the Treasury, with optimism he will take a considered approach to the economy.
Bessent, CEO of hedge fund manager Key Square Group, has called for an extension of tax cuts from Trump’s first term.
He also wants to reassert American energy dominance, and believes it is necessary to deal with the budget deficit. “US president-elect Trump’s pick for Treasury secretary got a warm reception from the market,” noted AJ Bell investment director Russ Mould.
This week sees the Fed’s preferred gauge of inflation, minutes from the bank’s most recent policy meeting, economic growth and jobless claims.
Bitcoin sat at around US$98 000, having set a record high of US$99 728.34 on Friday.
The digital currency has soared about 50% in value since Trump’s election at the start of the month, with hopes he will usher in measures to ease regulation on the sector.
Oil prices dipped after a recent run-up, fuelled by concerns over Israel’s wars with Hamas and Hezbollah.
Support had also come from the decision by major fossil-fuel producer Russia to hit Ukraine with a new-generation, intermediate-range missile which ramped up tensions with the West. On the company front, shares in Anglo American gained 1.7% in London morning deals after the mining group agreed a multi-billion dollar deal to offload its remaining coal mines used for steel production.
Italy’s second-largest bank Unicred it dropped 3.4% after bidding 10.1 billion euros (US$10.6 billion) in an all-share deal for rival Banco BPM, which won 1.8% in midday Milan
deals.
– Nampa/AFP