Morning Fundamentals: Bitcoin Surges to Record Highs
Keagan York | Nov 28, 2013 06:15AM ET
The Bitcoin, the virtual currency which exists only as software and isn't regulated by any institution or central bank, has surged to a record high price of over $1,050 yesterday. The value of a bitcoin has increased by a remarkable 80 fold in the past year alone as interest from investors in China and the United States surged as the currency gained wider acceptance. Merchants have begun to accept bitcoins for settlement of everything from confectionary to university tuition fees.
In what is an ignominious end to an often controversial career in politics, Silvio Berlusconi, the billionaire media magnate and former Prime Minister of Italy, has been expelled from the Italian Senate. After a 19 year term in the Senate, Berlusconi has been expelled for breaching anti-corruption laws. The move by the Senate came after Berlusconi lost his final appeal against a 2012 tax fraud conviction. He has been for most of his career the most influential politician in Italy but may now face the possibility of arrest after losing the immunity from arrest afforded him by the Senate.
U.S. equity markets were little changed as they continue to trade at near record highs after the release of employment data and consumer confidence figures prompted increased investor optimism in the U.S. economy. Applications for unemploy-ment benefits were lower than expected last week while consumer confidence rose in November. The S&P 500 has closed 0.25% higher at 1,807.20. Earlier in Europe, bourses all gained with the DAX gaining 0.66% while the FTSE climbed 0.20%.
Commodity prices were impacted by a stronger U.S. Dollar with the major indexes losing around 0.3%. WTI plunged to six month lows as U.S. stockpiles and production continue to rise. WTI fell 1.6% to $92.20. Precious metals fell in response to better than expected data that has prompted more speculation about Fed tapering. Gold lost 0.4% to $1,236 while silver fell more than 1% to $19.65. Copper lost 0.8%. Agricultural commodities were mostly lower.
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