(Bloomberg) — US equity futures fluctuated as investors paused a record-breaking rally. Bitcoin topped $100,000 after President-elect Donald Trump picked a crypto proponent to be the next head of the Securities & Exchange Commission.
Most Read from Bloomberg
French assets rebounded slightly as investors debated the implications of the ousting of Michel Barnier’s government. The CAC 40 stock index climbed 0.3% in Paris, tracking Europe’s regional Stoxx 600 gauge. French bonds rose, trimming the extra yield investors demand to hold the debt over safer German peers. The euro was up 0.2%.
S&P 500 contracts were steady after the 56th record close of 2024 put the index on course for its best year since 2019. Federal Reserve Chair Jerome Powell buoyed sentiment on Wall Street by saying the US economy is in “remarkably good shape.” The dollar and Treasuries were lower. Attention turns next to today’s US jobless claims numbers before key non-farm payrolls data due Friday.
“If you look under the hood of the economy, it all looks strong,” said Kenneth Broux, a strategist at Societe Generale SA. “The problem is we are trying to put our arms around what the incoming administration and Congress will do, and the Fed can’t say much until they know.”
Bitcoin jumped as much as 6.1% to breach the $100,000 mark for the first time, boosted by Trump’s embrace of digital assets. Stocks exposed to cryptocurrencies rose, with Riot Platforms Inc. and MARA Holdings Inc. among those higher in US premarket trading.
France’s far-right leader Marine Le Pen teamed up with a left-wing coalition to topple Barnier’s administration on Wednesday, pitching the country into further political turbulence. President Emmanuel Macron now needs to find another premier who can pass a budget for 2025 through the deeply divided parliament.
“The markets have partially anticipated this development, but repercussions can be expected,” said Alexandre Hezez, chief investment officer at Group Richelieu. “Any political or budgetary misstep could punish France much more severely on the markets.”
In Asia, the MSCI Asia Pacific index was little changed. Korean equities retreated, with the country’s ruling party looking to prevent President Yoon Suk Yeol’s impeachment by voting against a motion to initiate proceedings that may take place Saturday.
Fed Expectations
In comments at the New York Times DealBook Summit in New York, Powell said downside risks from the labor market had receded. He also said Fed officials could afford to be cautious as they lower rates toward a neutral level — one that neither stimulates nor holds back the economy.
Story Continues
