LONDON: European and Asian stock markets diverged on Thursday (Aug 14) and bitcoin hit a record high on the eve of landmark talks between United States President Donald Trump and Russian counterpart Vladimir Putin on potentially ending the Ukraine war.
Most European equity indices climbed after major Asian peers ended lower.
Bitcoin hit a new peak at US$124,514.59 in Asian trading, before cooling to around US$121,500.
The world’s biggest cryptocurrency is benefiting from expectations that the Federal Reserve will cut US interest rates before 2026, which is weighing on the dollar.
Bitcoin is also winning investor support thanks to strong backing for the cryptocurrency sector from Trump.
“An accommodative stance from the Trump administration combined with expectations of a September Fed rate cut have helped to propel gains for bitcoin,” Victoria Scholar, head of investment at Interactive Investor, noted on Thursday.
The pound won some support thanks to expectations that the Bank of England may not follow up its interest-rate cut last week with another reduction this year.
The currency’s rise weighed on London’s FTSE 100 index of top companies, some of which earn in dollars.
Britain’s economy performed better than expected in the second quarter as it weathered the impact of US tariffs and a higher UK business tax, official data showed on Thursday.
