Bitcoin surge risks creating a bubble, warns JP Morgan – latest updates

Thanks for joining me. Bitcoin has surged close to its record high and global stocks are also hitting fresh peaks – but a Wall Street bank is ringing alarm bells about the risk of a bubble.

JPMorgan’s chief market strategist Marko Kolanovic said he is concerned that there is “froth building” in markets.

5 things to start your day 

1) IT chaos and staff exodus threaten Britain’s ability to raise crucial debt | Illegal activity in government bond auctions risks going undetected, a Parliamentary committee has warned

2) Jaguar Land Rover owner to split off its cars division in EV shift | Tata Motors prepares for a future built around battery-powered vehicles

3) Issa brothers slash investment at petrol station empire in battle to pay down debts | Billionaires roll out ‘controlled reduction’ at EG Group to maximise liquidity

4) Non-dom tax raid risks backfiring on Hunt, warns IFS | New rules threaten to drive away super rich and diminish revenues, says think tank

5) Ben Marlow: Britain must not bend the knee to China – despite being on the brink of a death spiral | There are less grubby ways to inject life back into our moribund stock market

What happened overnight 

Most Asian stocks slid as the start of China’s week-long annual session of parliament disappointed investors with its lack of big ticket stimulus plans to prop up the struggling economy.

The Chinese government retained last year’s target for economic growth of “around 5pc” for this year, and announced plans to run a budget deficit of 3pc of economic output, down from a revised 3.8pc last year.

It also unveiled plans to issue 1 trillion yuan (£109bn) in special ultra-long term treasury bonds, which are not included in the budget.

Mainland stocks reversed early losses with the blue-chip CSI 300 up about 0.5pc, amid signs of suspected state-backed buying of some exchange-traded funds.

However, that failed to lift other markets in the region with Hong Kong’s Hang Seng deepening earlier declines to 2.7pc.

Tokyo’s key Nikkei index closed flat after hitting a fresh record the previous day as chip shares trimmed gains.

The benchmark Nikkei 225 index was little changed, down 11.60 points to end at 40,097.63, while the broader Topix index climbed 0.5pc, or 13.65 points, to 2,719.93. 

US shares edged down from their record heights in a quiet Monday on Wall Street. The S&P 500 slipped 0.1pc, to 5,130.95, coming off its latest all-time high. 

The Dow Jones Industrial Average of 30 major American companies dipped 0.2pc, to 38,989.83, and the Nasdaq Composite index lost 0.4pc, to 16,207.51.

The yield on benchmark 10-year US Treasury bonds rose to 4.21pc from 4.18pc late on Friday.