The virtual currency known as the bitcoin, which is used to pay for goods and services on the internet, has climbed to a record value of $261, rising more than 20 times so far this year alone. Bitcoins can now be traded on exchanges such as Bitstamp against other major currencies. Despite the value of a bitcoin plunging after the closing of the "Silk Road" website one month ago, where illicit goods were traded, prices have skyrocketed as demand for bitcoins in China rises. The largest bitcoin exchange in the world is now BTC China.
Meanwhile, in less surreal developments in the real world, a recovery in the eurozone appears to be gain-ing momentum as German factory orders rose more than expected in September. Orders surged 3.3% from August according to the Economy Ministry in Berlin against consensus expectations of a 0.5% gain. At the same time, confidence in the economy continues to rise and car sales rose to the highest level in two years in the month of September.
U.S. equity markets have gained on more speculation that the Federal Reserve will delay tapering of stimulus after Fed official said that economic weakness warrants continued maintenance of a loose monetary policy. Two separate papers by Federal Reserve officials called for continued "highly accommodative monetary policy." Markets continue to be driven by the bad news is good news mantra. The Dow Jones Industrial Index rose to a record high as the S&P 500 gained 0.37% to 1,769.57. Earlier in Europe, all bourses gained except for the FTSE which lost 0.08%.
Commodity have gained overnight after a string of losses to see the major indexes gain around 0.3%. WTI gained on a surprise gain in inventories, rising 1.5% to $94.80. Precious metals gained as speculation mounts that tapering of stimulus will be delayed. Gold rose 0.77% to $1,318 while silver gained by a similar margin to $21.80. Copper lost 0.6%. Agricultural commodities were mixed with coffee losing 2% while cotton was the biggest riser.