European equity benchmarks advanced on Tuesday, with the FTSE 100 climbing 0.3% as risk appetite improved following Bitcoin’s rally to a three-month high.
The UK’s blue-chip index gained 0.30%, supported by gains in Melrose Industries, which surged 10.4% to 510.20p after the industrial group announced a $100 million severance program and reiterated that it faces no criminal charges. Other movers included IAG, Rightmove and Rolls-Royce, each rising between 1.99% and 2.24%. The DAX in Germany added 0.7%, while the CAC 40 in France slipped 0.2%.
Bitcoin rose 0.86% to $79,134, extending a 28% gain in August and reaching its highest level since mid-May. The cryptocurrency briefly touched $81,237.94 during the Asian session. Gold futures were little changed at $4,698.51, while spot gold eased 0.19% to $4,642.85.
Commodities retreated as Brent crude fell 3.1% to $87.74 per barrel and WTI crude dropped 3.5% to $82.02. The declines followed overnight reports of a tanker being struck by an unidentified projectile near the Strait of Hormuz, though no casualties were reported.
The British pound strengthened 0.1% to $1.3638, while the S&P 500 slipped 0.3% and the Euro Stoxx 50 fell 0.2%. Nvidia shares rose 1.69% ahead of its earnings release scheduled for Wednesday.
Analysts at Jefferies noted that reports of the U.S. Treasury potentially using its $1 trillion General Account to finance bond buybacks contributed to Monday’s rise in Treasury yields and pressure on risk assets. The firm estimated the measure would add only about $14 billion against expected supply of roughly $148 billion through early November. Jefferies maintained a constructive view on risk assets, citing elevated cash levels on margin accounts and light equity positioning.
Geopolitical tensions in the Middle East remained elevated. Iran’s National Security Council head called for the U.S. to return to a June ceasefire memorandum, while the U.S. State Department offered up to $10 million for information on senior Iranian Revolutionary Guard Corps commanders. China’s foreign ministry said it would safeguard its interests after sanctions targeted Iranian allies, including Chinese banks involved in Iranian oil purchases.
Elsewhere, Melrose Industries’ GKN unit expects to resume full operations at its Garden Grove facility on September 28, while EasyJet and Apollo extended their scheme document deadline to October 15.
