Headline: Markets Climb as Europe Sets Records; Crypto Inflows Rise and Bitcoin Volatility Spikes
Europe’s risk rally extended as equities hit fresh highs on optimism that a U.S. government shutdown can be avoided, while energy and defense headlines added momentum. Utility giant SSE jumped after unveiling a multibillion-pound investment plan, and BAE Systems signaled robust profit growth. The upbeat tone was tempered by SoftBank’s sizable sale of Nvidia shares, a reminder that profit-taking in AI leaders can quickly ripple through chip stocks.
In technology and digital assets, quantum computing remains a long-term swing factor, with projections of up to $1.3 trillion in value creation by 2035—though fragile qubits keep timelines uncertain. IBM, Google, and Microsoft continue to push the frontier. In crypto, clearer U.S. regulatory signals are underpinning a surge in stablecoin activity and strong ETF inflows, lifting the market’s capitalization to around $380 billion and hinting at a new phase of adoption. At the same time, Bitcoin’s 30‑day implied volatility has climbed above 73%, with large holders stepping back—an indication of wider price swings ahead.
Credit markets are flashing unusual signals as select corporate bonds yield less than comparable sovereign debt, reflecting investor preference for stronger corporate balance sheets over deteriorating government finances. Elsewhere, noted investor Michael Burry is shorting Palantir on fears of an AI-driven valuation bubble, drawing a forceful rebuttal from CEO Alex Karp. In housing, mortgage rates remain sticky, with the 30‑year fixed around 6.16% and the 15‑year near 5.61%, offering little impetus for a refinancing wave.
Key Points: – European stocks hit record levels on reduced U.S. shutdown risk; SSE jumps on a £33 billion network investment plan. – BAE Systems targets around 10% profit growth, while SoftBank’s $5.8 billion Nvidia share sale injects caution into AI and chip names. – Quantum computing could unlock up to $1.3 trillion by 2035, with IBM, Google, and Microsoft leading the race despite technical hurdles. – U.S. crypto regulation tailwinds fuel a $260 billion stablecoin boom and $160 billion ETF inflows, lifting market cap to about $380 billion. – Bitcoin’s 30‑day implied volatility tops 73% as whale activity moderates, pointing to higher price swings. – Corporate bond yields dip below some sovereigns as investors favor healthier company balance sheets amid rising public debt; mortgage rates hold near 6.16% (30‑year) and 5.61% (15‑year).
