Global markets headed broadly higher on Monday, with bitcoin enjoying the biggest gains as the cryptocurrency traded above the $11,000 mark for the first time since March 2018. As of 2:00 p.m. HK/SIN, bitcoin was trading at $10,745.40, after hitting a high of $11,307.69 earlier in the session. Bitcoin has surged 72.29 percent in the past year. The cryptocurrency has gained over 170 percent since the start of 2019. Analysts have attributed the recent gains to Facebook’s cryptocurrency project, Libra, which has sparked renewed interest in the industry and trade of cryptocurrencies. Analysts expect that Facebook’s foray into the world of digital currencies will generate higher trade volumes and additional interest in crypto trading, at least in the near term.
Oil Prices Head Higher
Oil prices were also higher on Monday as tensions between the United States and Iran showed no signs of cooling. U.S. WTI futures were up 0.59 percent in the mid-afternoon to $57.77 per barrel while Brent crude futures were up 0.31 percent to $65.40 per barrel after U.S. Secretary of State Mike Pompeo announced that “significant” sanctions would be implemented against Tehran. Last week Iran downed an unmanned U.S. drone, aggravating the already tenuous relations between the countries. Though U.S. President Donald Trump has threatened and then cancelled a military strike against Iran, he has been known to use economic tactics to get his way. Brent crude gained nearly 5 percent last week, its first week of gains in over a month. U.S. WTI soared nearly 10 percent last week, its biggest weekly gain since December 2016.
Asian Stocks Enjoy the Rally
Asian stocks were modestly higher on Monday, heading up after a down day on Wall Street on Friday. Japan’s Nikkei 225 was up 0.13 percent in the mid-afternoon, while Australia’s ASX 200 was up 0.14 percent. South Korea’s Kospi was up a modest 0.02 percent. China’s benchmark indexes bucked the trend, with both the Shenzhen Composite and the Shanghai Composite trading lower on continued concerns about the trade tensions between China and the U.S.