European and Asian stock markets rose on Monday, while bitcoin soared to a record high as Donald Trump prepared to re-enter office as president of the United States.
Bitcoin hit a historic $109,000, driven by Trump’s weekend announcement of his cryptocurrency, $TRUMP, a meme coin that quickly reached a multi-billion-dollar market capitalization. The former president has indicated plans to deregulate the cryptocurrency sector, further fueling market enthusiasm.
“Markets are beating to the drum of Donald Trump on the day of his return to the White House,” said Russ Mould, investment director at AJ Bell.
London’s FTSE 100 index and Frankfurt’s DAX were near record highs by midday. However, Wall Street was closed for the Martin Luther King Jr. holiday.
Investor sentiment was buoyed by reports of positive talks between Trump and Chinese President Xi Jinping, alleviating concerns over a potential trade war. Despite this, Trump’s stated intention to impose hefty tariffs on imports has raised fears of economic tensions between the world’s two largest economies.
Trump’s promises to cut taxes, reduce regulations, and tighten immigration policies have stirred hopes for growth while also raising inflationary concerns. Analysts predict that such moves could force the Federal Reserve to pause further interest rate cuts or even consider hikes.
“The start of a new presidency often brings fresh energy — and uncertainty — to the financial markets,” noted Saxo Markets chief investment strategist Charu Chanana.
Asian markets showed mixed results, with Hong Kong’s Hang Seng Index leading gains, up 1.8%, as hopes rose that a trade war might be averted. Meanwhile, South Korea’s Kospi index slipped after the Bank of Korea lowered its 2025 economic growth forecast, citing political risks following President Yoon Suk Yeol’s brief declaration of martial law last month.
South Korea’s central bank announced a $250 billion support package for exporters, addressing concerns over Trump’s potential tariffs.
Key Market Figures (As of 1100 GMT)
• London – FTSE 100: UP 0.2% at 8,520.71 points
• Paris – CAC 40: UP 0.1% at 7,719.98
• Frankfurt – DAX: FLAT at 20,910.09
• Tokyo – Nikkei 225: UP 1.2% at 38,902.50 (close)
• Hong Kong – Hang Seng Index: UP 1.8% at 19,925.81 (close)
• Shanghai – Composite: UP 0.1% at 3,244.38 (close)
• New York – Dow: UP 0.8% at 43,487.83 (close)
Currency and Commodity Markets
• Euro/dollar: UP at $1.0318 from $1.0272 on Friday
• Pound/dollar: UP at $1.2195 from $1.2168
• Dollar/yen: UP at 156.42 yen from 156.20 yen
• Euro/pound: UP at 84.59 pence from 84.41 pence
• West Texas Intermediate: DOWN 0.4% at $77.58 per barrel
• Brent North Sea Crude: DOWN 0.5% at $80.37 per barrel
