Bitcoin Nears Peak, China Keeps Growth Target

Equities

On Monday, the FTSE 100 fell by 0.6% ahead of the national budget announcement, set for later in the week. Hipgnosis Songs notably dropped 8.2% to a record low after the music investor extended its halt on dividend payments. This decision came in the wake of steep declines in asset valuations, leading to a reassessment of the company's income distribution strategy.

Ocado also faced a downturn, ending the day 6.5% lower after Morgan Stanley revised its target price for the stock. In other news, Mondi, a packaging firm, saw its shares decrease by 2% following reports that it is reconsidering its takeover proposal for DS Smith, whose shares also fell by 1.3%.

Across the Atlantic, the S&P 500 slightly edged lower by 0.12%, closing the day at 5,130.95, amid a cautious trading atmosphere as investors awaited Federal Reserve Chair Jerome Powell's congressional testimony.

Apple experienced a notable decline, closing down 2.5% after receiving a $2-billion EU antitrust fine, impacting its stock negatively. Despite these setbacks, rallies in chip stocks like Nvidia showcased the continued investor interest in artificial intelligence, contributing to intraday record highs for the S&P 500. Nonetheless, the index struggled to maintain its upward trajectory towards the close of trading.

The Dow Jones Industrial Average fell by 0.25% to 38,989.83, and the Nasdaq Composite dropped by 0.41% to 16,207.51.

Forex & Commodities

The dollar experienced a slight decline against the euro on Monday as the financial markets geared up for a week filled with significant events. These events include the announcement of Britain's budget, a meeting of the European Central Bank (ECB), the release of US employment data, and key political developments in China and the US. Additionally, Bitcoin saw a notable increase, reaching a more than two-year high above $65,000, largely driven by significant investments into cryptocurrency exchange-traded funds in the United States.

Currency markets were relatively stable as traders were hesitant to make significant moves ahead of the week's potentially impactful events.

In the US, attention is focused on Federal Reserve Chair Jerome Powell's upcoming testimony before lawmakers, and the anticipated jobs report for February, which is expected to show a continuation of solid employment growth.

Gold prices reached a three-month high, spurred by increasing bets on a potential US Federal Reserve rate cut in June.

In the oil markets, prices settled slightly lower despite the OPEC+ group's decision to extend voluntary output cuts through the middle of the year.