European stock markets traded mixed on Monday, with the FTSE 100 rising 0.3% as sterling gained 0.1% to $1.3638. Germany's DAX advanced 0.7%, while France's CAC 40 declined 0.2%. The S&P 500 fell 0.3%, and the Eurostoxx slipped 0.2% during the session.
Bitcoin extended its surge, climbing 0.86% to $79,134 after briefly touching $81,237.94 in Asian trading, levels not seen since mid-May. The cryptocurrency has gained 28% in August, maintaining its upward momentum.
On the FTSE 100, Melrose Industries led gains with a 10.4% rise to 510.20p, outpacing IAG, Rightmove, and Rolls-Royce. The company also announced GKN's Garden Grove operations are set to resume full production on September 28, alongside a $100 million claims program. Melrose confirmed it faces no criminal charges. EasyJet and Apollo extended their scheme document deadline to October 15 amid ongoing regulatory discussions.
Commodities showed divergent trends. Brent crude fell 3.1% to $87.74 per barrel following a 2.4% drop in the prior session, while West Texas Intermediate declined 3.5% to $82.02. Gold futures held steady at $4,698.51, while spot gold slipped 0.19% to $4,642.85.
Rates rallied on reports the U.S. Treasury may use its $1 trillion General Account to fund bond buybacks, according to Jefferies' Mohit Kumar. The move could inject roughly $14 billion into the market against $148 billion in supply through early November.
Geopolitical tensions persisted as the U.S.-Iran conflict approached its six-month mark. The U.S. State Department offered a $10 million bounty for information on senior IRGC commanders. An oil tanker was struck by an unidentified projectile off Oman's coast, disabling the vessel without casualties, Britain's maritime agency reported. Iran's economy minister stated Tehran has a two-year plan to withstand economic pressure, while the national security chief called for the U.S. to return to a June ceasefire memorandum.
Upcoming corporate and policy events include Nvidia's earnings release on Wednesday and a speech by Federal Reserve Governor Warsh on Friday.
