Global markets are in full speed after a long holiday weekend. Cyber Monday, the mega online shopping day is attracting millions of shoppers from all around the world. Global stocks try to shrug off poor economic data from China. Meanwhile, Bitcoin rallies on, getting close to the $10,000 level as the USD remains under pressure. Here are the big things to know for today’s trading.
1. Cyber Monday is on
The online shopping bonanza is expected to bring in as much as $6 billion, according to Adobe Digital Insights, which tracks online spending at America's 100 largest retail websites.
Digital sales have been strong this holiday shopping season: American shoppers spent a record $5 billion online in 24 hours on Black Friday, a 16.9% increase over last year, according Adobe Digital Insights.
The performance is welcome news for embattled retailers who were having a dismal 2017. Store closings have more than tripled this year to a record 6,700.
2. Global stocks struggle
Global stocks sought to shake off the bearish sentiment in Chinese stocks on Monday as the Shanghai Composite chalked up its biggest three-day decline since June 2016, despite a minor recovery last Friday.
European shares erased early morning losses to turn around on Monday as financials gained ground amid fresh deal making activity.
Traders remained cautious despite the fact that leaders of German Chancellor Angela Merkel's conservative party agreed on Sunday to pursue a "grand coalition" with the Social Democrats (SPD) to break the political deadlock.
U.S. futures pointed to a slightly higher open on Monday as many traders returned from a long holiday weekend.
3. Bitcoin nears $10,000
The price of the digital currency Bitcoin rose above the $9,000 level for the first time in its nine-year history on Sunday, amid growing fears over an asset bubble.
Bitcoin has risen more than 900% in volatile trade this year, with three separate corrections of more than 25% all giving way to subsequent rallies. At current prices bitcoin has a total market capitalization of around $160 billion.
The move from $8,000 to $9,000 took just nine days as recent announcements from derivatives marketplaces Cboe and CME that they would launch Bitcoin futures was taken as evidence that cryptocurrencies were obtaining wider acceptance have added to speculation that institutional investors will begin to invest in the asset, driving speculation that Bitcoin could hit $10,000 by the end of year.
4. Dollar remains under pressure
The dollar remained under pressure on Monday, trading at 6-week lows against other major currencies, as investors looked ahead to further signals from the Fed and progress on tax reform this week, while also keeping an eye U.S. housing sector data due later in the day.
The fact that the Fed minutes revealed last week that “many participants” showed concern over the inflation outlook, mirroring recent remarks by outgoing Fed chair Janet Yellen that it was “very uncertain”, sparked speculation that the future path of tightening may not be as aggressive as originally thought and dampened demand for the greenback.
Traders were also waiting for U.S. President Donald Trump to address Senate Republicans at their weekly luncheon Tuesday on taxes ahead of a potential vote on tax reform.
At 15:00 GMT Monday, the U.S. Census Bureau will release new home sales data for October.
