Key Takeaways
- • Bitcoin traded near $82,500 at the time of writing, up 0.7% since midnight UTC and 1.3% over 24 hours, as global risk appetite rebounded on Monday.
- • China's GDP grew 4.5% year on year in the third quarter, faster than the second quarter's 4.3% pace, according to the National Bureau of Statistics. Retail sales rose 1.1%, more than double the 0.5% increase expected.
- • Nasdaq futures gained more than 1%, Japan's Nikkei rose 1.8% and South Korea's Kospi advanced 0.6%, recovering from last week's losses led by AI-related shares.
- • Oil fell on both sides of the Atlantic, reversing part of last week's gains. Reuters attributed the decline to expectations that President Donald Trump's Russia waiver would boost supply.
- • The Federal Reserve is expected to hold its benchmark rate in the 4.75% to 5% range this month, after raising rates by 25 basis points last month. A sustained decline in oil could ease inflation fears and open the way for future cuts.
Summary
Global markets rallied Monday as stronger Chinese economic data and lower oil prices revived investor appetite for risk. Bitcoin, the leading cryptocurrency by market value, traded around $82,500, while Nasdaq futures gained more than 1% and major Asian indexes advanced after a week of technology-led declines. The rebound followed losses in AI-related shares the previous week that had hit Nasdaq and Asian markets hard.
China's economy grew 4.5% year on year in the third quarter, according to data from the National Bureau of Statistics released Monday, outpacing the 4.3% growth recorded in the second quarter. Other indicators also pointed to firmer domestic demand in the world's second-largest economy. Retail sales of consumer goods rose 1.1%, more than double the 0.5% increase expected and up from 0.4% the previous month. Because China is the world's factory and a major importer of industrial commodities, strong data from the country tends to encourage risk-taking across financial markets. Chinese stocks rose 0.3%.
Elsewhere, gold was largely unchanged near $4,180 an ounce, and the Dollar Index held near Friday's lows below 102. The report noted that the rebound was also consistent with the VIX's historical tendency to normalize after Friday spikes, a pattern that has often coincided with steadier equity markets.
Oil prices fell on both sides of the Atlantic, reversing some of last week's gains. Reuters attributed the decline to expectations that President Donald Trump's Russia waiver would boost supply, though geopolitical risks in the Middle East persist. A sustained decline in oil could ease inflation concerns and clear the way for the Federal Reserve to cut interest rates. As of publication, the central bank was expected to keep its benchmark borrowing cost unchanged in the 4.75% to 5% range this month, following a 25 basis point increase last month.
China's economy grew 4.5% year on year in the third quarter, according to data from the National Bureau of Statistics released Monday, outpacing the 4.3% growth recorded in the second quarter. Other indicators also pointed to firmer domestic demand in the world's second-largest economy. Retail sales of consumer goods rose 1.1%, more than double the 0.5% increase expected and up from 0.4% the previous month. Because China is the world's factory and a major importer of industrial commodities, strong data from the country tends to encourage risk-taking across financial markets. Chinese stocks rose 0.3%.
Elsewhere, gold was largely unchanged near $4,180 an ounce, and the Dollar Index held near Friday's lows below 102. The report noted that the rebound was also consistent with the VIX's historical tendency to normalize after Friday spikes, a pattern that has often coincided with steadier equity markets.
Oil prices fell on both sides of the Atlantic, reversing some of last week's gains. Reuters attributed the decline to expectations that President Donald Trump's Russia waiver would boost supply, though geopolitical risks in the Middle East persist. A sustained decline in oil could ease inflation concerns and clear the way for the Federal Reserve to cut interest rates. As of publication, the central bank was expected to keep its benchmark borrowing cost unchanged in the 4.75% to 5% range this month, following a 25 basis point increase last month.
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