U.S. stock futures continue to rise, European stocks are up, gold falls 0.2%, and Bitcoin posts its worst monthly performance in three years.

U.S. stock futures continue to rise, European stocks are up, gold falls 0.2%, and Bitcoin posts its worst monthly performance in three years.

On Monday the 24th, U.S. stocks continued their rebound, with traders increasing bets on a Fed rate cut in December. S&P 500 index futures rose 0.5%.

New York Fed President Williams said last Friday that a rate cut in the near future is still possible, injecting optimism into the market. Euro Stoxx 50 futures rose 0.8%. Meanwhile, Bitcoin continued its weak performance after sustained selling, making it the worst monthly performance since 2022. On Monday, it continued to decline. Indonesia’s benchmark index once rose 1%, hitting a record high of 8499.716 points.

The market's focus has shifted to the Fed's December policy decision. Traders are now pricing in a rate cut probability of more than 60%, a sharp rebound from the previous level of less than 30%.

S&P 500 Index futures rose 0.5%. Nasdaq 100 futures rose 0.7%.Euro Stoxx 50 futures rose 0.8%.South Korea's KOSPI closed down 0.2% at 3846.06 points.Indonesia's benchmark index once rose 1%, hitting a record high of 8499.716 points.The US Dollar Spot Index showed little change.The yen fell 0.2% to 156.68 per USD.Bitcoin fell 1.3% to 86,807.01 USD.Spot gold fell 0.2% to 4,055.88 USD per ounce.West Texas Intermediate crude oil rose 0.2% to 58.19 USD per barrel.

Fed Officials Statements Boost Rate Cut Expectations

New York Fed President Williams said last Friday that a rate cut in the near future is still possible, as downside risks to employment increase and inflation risks ease. Williams is seen as a close ally of Fed Chair Powell, and his comments pushed U.S. Treasury yields lower. However, there are still differences within the Fed regarding a rate cut; Boston Fed President Collins said no decision has been made on policy action. Federal funds futures pricing shows traders now believe the probability of a rate cut in December is above 60%, after once falling below 30%.

Goldman Sachs expects a rate cut next month, followed by two more next March and June, bringing the federal funds rate down to 3%–3.25%. JPMorgan strategists, including Fabio Bassi, hold a different view, believing the FOMC will keep rates unchanged at its December meeting due to “limited new data, with October nonfarm payrolls and the November employment report released after the meeting.” The bank expects quarter-point cuts in January and April next year.

Spot gold fell 0.2% to 4,055.88 USD per ounce.

Bitcoin Records Worst Monthly Performance Since 2022

Bitcoin continued its weak performance on Monday after sustained selling, putting it on track for the worst monthly performance since 2022. After briefly rebounding over 4% on Sunday, the largest cryptocurrency edged lower on Monday, trading at around 86,800 USD. Traders are watching 85,200 USD as a key support level.

Ten Cap co-founder Jun Bei Liu said in a media interview, "Recent selloffs and volatility are to some extent related to other volatile or highly leveraged assets such as Bitcoin." Last week, cryptocurrency market volatility surged, intensifying concerns over macroeconomic uncertainty and ETF fund outflows.

European Fiscal Pressure Becomes Market Focus

The euro and pound remained stable, while European fiscal pressure became a market focus. Early Saturday, the French National Assembly rejected part of the 2026 budget, highlighting uncertainty surrounding Prime Minister Sebastien Lecornu’s giant deficit plan.

Over the weekend, the UK government said it would freeze rail fares in Wednesday's budget, one of several affordability measures by Chancellor Rachel Reeves to ease political pressure. Reeves needs to stabilize UK public finances via up to £25 billion in tax increases and spending limits. Italy won its first rating upgrade from Moody’s in 23 years, which was a victory for Prime Minister Meloni, ending the country’s era of hovering at the junk status edge.

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