Bitcoin surges to January peak as oil slide lifts sentiment

Headlines:

Markets:

• Brent crude falls 2.5% to $101.30
• US 10-year Treasury yields drop 4.7 bps to 4.95%
• AUD leads, JPY lags on the day
• Gold declines 0.3% to $4,362
• Bitcoin rises 4.5% to $84,777
• European indices climb; S&P 500 futures gain 0.7%

The new week began with a busy start as market participants continue to digest a quieter overall tone.

With the upcoming UN General Assembly in focus, speculation has emerged that the US might use the event to seek a resolution with Iran. Oil prices opened with a higher gap on Monday but quickly reversed course, with Brent crude now sliding over 2% to $101.30.

As oil prices cool, bond yields are also retreating in both Europe and the US. German 10-year bund yields are down more than 6 bps to 3.45%, while US 10-year Treasury yields have fallen nearly 5 bps to 4.95%.

The decline in yields is providing a modest boost to risk appetite, with equities pushing higher to begin the week. Major European stock indices have opened firmly in positive territory, posting gains of just over 1% in early trade. That momentum is supported by a more upbeat tone in US futures, driven by stronger performance in technology shares. S&P 500 futures are up 0.7% and Nasdaq futures are 1.0% higher.

In the currency market, the dollar is trading in a mixed fashion but remains largely unchanged overall. With Japanese markets closed, attention is focused on USD/JPY, which is trading above the 157.00 level on Monday.

Elsewhere, gold is trading 0.3% lower at $4,362, while Bitcoin is making headlines by briefly touching $85,000 as it eyes a technical breakout to the upside. The cryptocurrency is rising despite headwinds, climbing to its highest level since January and shrugging aside the negative setbacks from last week.