Cryptocurrencies have rallied on plans for a new US strategic reserve, while the euro and sterling rose amid Europe’s peace push for Ukraine.
After a summit of 18 leaders, mostly from Europe, in London over the weekend, Keir Starmer announced a “coalition of the willing” led by the UK and France to help end the fighting in Ukraine, after Russia’s invasion three years ago.
The euro climbed by 0.4% to $1.0417, recovering from Friday’s low of $1.0360 hit after US president Donald Trump and Ukrainian president Volodymyr Zelenskyy clashed publicly at the Oval Office. Sterling rose by 0.2% to $1.2604.
Bitcoin and some of its rivals jumped on news it would be included in a new US strategic reserve of cryptocurrencies, along with ether and XRP. Trump named five digital assets on social media that he expects to include in a new reserve, including bitcoin, ether, XRP, solana and cardano.
Bitcoin, the world’s largest crypto asset rose by 9.2% to more than $92,000 this morning while ether advanced by nearly 7% and XRP leapt by more almost 25%.
The rally came after bitcoin recorded its largest monthly loss since June 2022, as the euphoria over cryptocurrencies after Trump’s election win faded, before the president pumped it up again on Sunday. The price of bitcoin, which tends to be volatile, fell by 17.5% in February.
Stock markets in Asia made some gains after upbeat Chinese factory data, while investors nervously await news of whether or not new US tariffs will go ahead. Japan’s Nikkei rallied by 1.7% while Hong Kong’s Hang Seng gained 0.3% and China’s Shenzhen rose by 0.36%. However, markets in South Korea, Taiwan and India were in the red.
Production at China’s factories returned to growth last month, an official survey showed, thanks to higher new orders and purchase volumes.
US commerce secretary, Howard Lutnick, said on Sunday that tariffs on Canada and Mexico will come into effect on Tuesday, but PresidentTrump will determine whether to stick with the planned 25% level.
The Canadian dollar and Mexican peso initially gained about 0.2%, but are now down by the same amount. A further 10% levy on Chinese imports is also due to kick in tomorrow, as China's National People’s Congress opens on Wednesday, where stimulus measures and potential counter-measures against the US could be announced.
The agenda
• 9.30am GMT: BoE consumer credit and mortgage lending (Jan)
• 10am GMT: eurozone inflation flash (Feb)
• 3pm GTM: ISM Manufacturing PMI (Feb)
We'll be tracking all the main events throughout the day … |
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