European shares surge and Bitcoin hits record high after global market rally

European markets surged on Monday, following in the footsteps of last week's Wall Street rally.

Bitcoin reached a new high, soaring over $82,000 for the first time, but Asian stocks took a hit as China’s stimulus package fell short of investor expectations. Germany’s DAX saw a 1.2% increase to 19,438.89, while in Paris, the CAC 40 rose by 1.1% to 7,421.24. Britain’s FTSE 100 also experienced a boost, rising by 0.7% to 8,128.58.

US shares were set to open higher, with futures for the S&P 500 and the Dow Jones Industrial Average both up by 0.3%. Bitcoin set a new record, climbing to $82,022.98 in early trading, according to Coindesk. The popular digital token has been on an upward trend since the re-election of former President , who is a strong supporter of cryptocurrencies and has pledged to make the United States the crypto capital.

In Asia, China approved a 6 trillion yuan ($839billion) plan during a meeting of its national legislature on Friday. The much-anticipated stimulus is aimed at helping local governments refinance their debt, in a bid to stimulate growth in the world’s second-largest economy.

"It’s not exactly the growth rocket many had hoped for. While it’s a substantial number, the stimulus is less about jump-starting economic growth and more about plugging holes in a struggling local government system," commented Stephen Innes of SPI Asset Management.

China's inflation rate in October saw a year-on-year increase of 0.3%, according to the National Bureau of Statistics on Saturday, marking a slowdown from September’s 0.4% rise and hitting its lowest level in four months. The Hang Seng dropped by 1.5% to 20,426.93, while the Shanghai Composite recovered from morning trading losses to close 0.5% higher at 3,470.07.

Japan’s benchmark Nikkei 225 fluctuated between gains and losses, closing less than 0.1% higher at 39,533.32. ’s S&P/ASX 200 fell by 0.4% to 8,266.20, and South Korea’s Kospi decreased by 1.2% to 2,531.66. On Friday, the S&P 500 rose by 0.4% to 5,995.54, achieving its largest weekly gain since early November 2023 and briefly surpassing the 6,000 mark for the first time.

The Dow Jones Industrial Average climbed 0.6% to 43,988.99, while the Nasdaq composite added 0.1% to 19,286.78.In the bond market, longer-term Treasury yields eased. The yield on the 10-year Treasury slipped to 4.30% on Friday from 4.33% late Thursday.

However, it remains significantly above its mid-September level, when it was near 3.60%. Treasury yields have largely risen due to the US economy proving more resilient than expected.

The hope is that it can maintain this strength as the Federal Reserve continues to cut interest rates to support the job market, now that it has nearly achieved its 2% inflation target. Some of the increase in yields has been attributed to Trump's rhetoric.

His promotion of tariffs and other policies, which economists warn could fuel inflation and escalate US government debt alongside economic growth, have already led traders to reduce their predictions for Federal Reserve rate cuts next year. While lower rates can stimulate the economy, they can also stoke inflation.

In other market news on Monday, US benchmark crude oil fell by 8 cents to $70.30 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, dropped 20 cents to $74.07 per barrel. The dollar strengthened to 153.79 Japanese yen from 152.62 yen, while the euro slipped to $1.0684 from $1.0723.