European stocks slide; bitcoin retreats from record highs – as it happened

Rolling coverage of the latest economic and financial news as investors cooled on European stocks and oil futures

• Tesla buys $1.5bn in bitcoin, pushing price to new high
• Tesla should stick to what it's good at - and that isn't bitcoin

2.54pm GMT

The big market story today was bitcoin's new record high of more than $48,000 this morning.

The cryptocurrency extended its gains overnight after Tesla disclosed its own $1.5bn investment in bitcoin and said it is likely to start accepting it as payment for its cars in the future.

2.34pm GMT

Wall Street is open for trading. Here are the initial prints:

2.24pm GMT

As US traders login for the Tuesday trading session, they be catching up with the overnight spike in bitcoin to fresh record highs of over $48,000 and mulling whether there's further to go in this week's rally.

Despite falling back from those highs, the cryptocurrency is still up 3.7% on the session at $46,371.

2.00pm GMT

The EU's Security and Markets Authority (ESMA) is to look into how clearing houses coped during the surge in trading that led to rollercoaster moves on stock markets at the start of Covid lockdowns last year.

The regulator is planning to hold a workshop for clearers on 17 February to gather the views of our speakers and shine a light" on how they managed at the start of the pandemic.

It will also allow participants to take stock of lessons learned and discuss possible improvements.

1.41pm GMT

US futures have slipped further, with less than an hour to go before Wall Street opens for Tuesday's trading session:

1.37pm GMT

Transport stocks on the FTSE 350 travel and leisure index are trading lower amid Hancock's announcement about tighter, more expensive quarantines for UK arrivals.

1.15pm GMT

The capital's business lobby group London First is also hoping that additional business support is rolled by chancellor Rishi Sunak at next month's budget.

Adam Tyndall, Programme Director for Connectivity at London First, said:

The short-term future of international travel will be reliant on a combination of vaccination and testing, so increasing testing requirements is an important step towards instilling confidence in passengers.

However, the Government must work with industry to boost international cooperation towards a common global approach.

12.58pm GMT

Responding to stricter traveller quarantine rules, the Confederation of British Industry is calling for more government support for companies and staff in the UK's aviation sector:

Matthew Fell, CBI Chief UK Policy Director, said:

Business understands the priority is to protect the health of the population, and supports measures to reduce infections and hasten the return to a normal way of life.

Yet these new quarantine rules and testing requirements are a further reminder of just how challenging the situation is for the international travel sector right now.

12.50pm GMT

UK health secretary Matt Hancock is outlining how the government is strengthening Covid restrictions for travellers, as he addresses MPs this afternoon.

Related: UK Covid live: Matt Hancock makes Commons statement on testing for arrivals and hotel quarantine

12.21pm GMT

The lead investigator into the failed regulation of London Capital & Finance, Dame Elizabeth Gloster, has hit out at former City watchdog boss Andrew Bailey for claiming that his request to not be named in the report was down to a misunderstanding'.

As you will see, Mr Bailey's primary assertion was that my report should delete the reference to responsibility' resting with specific identified/identifiable individuals, whether the executive directors of supervision, or Mr Bailey.

The final paragraph on this point in the representations requested that, in the event that the investigation disagreed with Mr Bailey's primary position that references to individual responsibility should be deleted, the final report should make clear that the investigation is not making findings that acts or omissions of Mr Bailey caused the regulatory failings".

11.56am GMT

Oil prices have given up their gains, which could end their longest winning streak since January 2019.

Today would otherwise mark the second-straight session of rising prices.

11.16am GMT

British Airways says it will operate transatlantic flights partially powered by sustainable fuels as early as next year, our transport correspondent Gwyn Topham writes.

Related: BA plans transatlantic flights partially fuelled by recycled waste in 2022

11.02am GMT

Quick stock update: The FTSE 100 is back in negative territory along with the rest of major European indices.

The German DAX is down 0.6%, the French CAC 40 is down 0.14% and the pan-European Stoxx 600 is down 0.4%.

10.33am GMT

Brent crude futures are still holding above $60.80, up 0.4% on the day.

All eyes are now on the next OPEC meeting on 4 March, which could raise prospects of further production cuts to help support global oil prices.

Front-month Brent crude oil hanging in there above $60/b in early European trading today, back to pre-pandemic levels. What will #OPEC+'s next move be at its meeting in 3 weeks? #OOTT pic.twitter.com/8FFRqUPMN9

10.21am GMT

US futures are in negative territory, pointing to a less buoyant start to trading on Wall Street this afternoon after the three major indexes posted record highs at Monday's close:

10.12am GMT

Bitcoin, which hit a record high of more than $48,000 this morning has dropped back below the $47,000-mark.

We may be seeing profit taking from some bitcoin investors who may be less optimistic about a near-term surge to $50,000.

9.35am GMT

Britain's tough new lockdown measures have dented consumer confidence and reduced spending to levels not seen since last spring, according to two separate surveys, our economics editor Larry Elliott reports.

January saw retail sales growth decline to its lowest level since May of last year. The current lockdown has hit non-essential retailers harder than in November, with the new variant hampering consumer confidence and leading customers to hold back on spending - especially on clothing and footwear.

As the impact of the latest lockdown start to takes its toll, we've seen particular sectors struggle, as physical premises across the UK were forced to close. Last month's glimmer of hope for the travel sector also seems to have stalled as tougher border controls saw bookings drop.

Related: UK lockdown reduces consumer spending to lowest levels since last spring

9.26am GMT

Neil Wilson, chief market analyst for Markets.com, raises a number of issues around Tesla's investment in bitcoin, including potential questions around market manipulation and using government tax breaks to invest in crypto:

There are so many elements to this story that deserve attention. First is the potential market manipulation vis-a-vis Musk's recent tweeting.

Second, it's interesting to note that the investment is the same as Tesla earned in regulatory tax credits from the US last year - taxpayer money being spaffed on a speculative investment in cryptocurrency is one way to look at it.

If Tesla really is to accept Bitcoin as payment, will prices be dynamic - and stay pegged to dollar value - or will they take on even greater FX risk by maintains prices in bitcoin?

Pricing in Bitcoin is fine if you are selling pizzas - the most you might lose is $10. But if Bitcoin suddenly doubles, Tesla's margins would be eroded without a matching hike in the price.

9.04am GMT

The FTSE 100 has reversed losses clocked at the start of trading, and is now higher by nearly 0.2% at 6534 points.

The blue chip index is getting a lift from energy majors like Royal Dutch Shell (RDS in the market data blow) and BP that are riding the 13-month high in oil prices.

Metals rallied yesterday because of the chatter about the US spending scheme. Lately there have been creeping concerns about higher inflation being in the pipeline on account of all the money that has been injected into financial systems from central banks and governments.

Gold has traditionally been a popular inflation hedge. Dealers snapped up the yellow metal for fears that higher inflation is on the horizon. Industrial metals, like copper, silver and platinum rose too as economic activity should increase as a result of the $1.9 trillion relief programme.

8.44am GMT

Tui expects a return to foreign holidays this summer, thanks to the UK's vaccination programme and rapid tests in other countries, our reporter Julia Kollewe reports.

The world's biggest travel operator said it had received 2.8m bookings for summer breaks, just over half of 2019 levels, and it is offering 80% of holidays compared with 2019.

A look at the historically high savings rate in the EU also underlines that the scope for consumer spending is high. The significant increase in spending on booked travel reflects this very clearly. Holidaymakers are catching up and are willing to pay more for their holidays.

Related: Tui says it expects Covid vaccine to restart summer travel

8.32am GMT

While the bitcoin price surged on the back of Tesla's $1.5bn investment, the electric carmaker has not benefited from a similar boost.

Tesla's shares closed higher by just 1.3% last night at $863.42. They're now down 0.5% in after hours trading, at $858.60.

First, bitcoin is an extremely volatile asset and history shows that the volatility is not only one sided. If bitcoin's price was almost multiplied by five over the past year, it doesn't mean that it won't come down crushing.

The high volatility in bitcoin's value will therefore inevitably inject a certain volatility in Tesla's revenue, and decrease the predictability of the company's performance

8.21am GMT

The international team of World Health Organization experts in China investigating how the coronavirus outbreak started are due speak to the media in Wuhan shortly.

Follow our Coronavirus blog for live updates:

Related: Coronavirus live news: WHO team to speak in Wuhan following investigation

8.11am GMT

Ocado is the worst performing stock on the FTSE 100, falling 3.3% despite reporting booming sales as its online grocery service, which benefited from an en-masse switch to home delivery services during the pandemic.

Many customers who have tried online grocery for the first time have seen the benefits and are saying they are unlikely to revert to pre-crisis shopping habits.

8.04am GMT

European markets are open for the trading session. Here are the initial prints:

7.59am GMT

Oil prices are at their highest level in 13 months, and both Brent crude - the global benchmark - and WTI are on their longest winning streak since January 2019.

Brent futures are on their seventh session of gains, with prices currently up nearly 0.9% at about $61.10.

Should the Biden-led government fast-track the spending programme that should spark higher demand for the energy in the months ahead.

7.38am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Bitcoin enthusiasts are celebrating a fresh jump in the cryptocurrency's value. It rose further overnight after an initial surge on Monday, when Tesla disclosed its own $1.5bn investment in bitcoin and said it is likely to start accepting it as payment for its cars in the future.

Companies are holding big cash piles in their bank account, which is not earning them much at all. These cash rich companies do not know what they should do with their cash. Hence a new trend could be emerging, which has been put in motion by Tesla.

It is true that Tesla's investment in Bitcoin is tiny compared to its market cap or its balance sheet. But the important point to pay attention to here is if other cash rich companies like Apple, Microsoft, Facebook also begin to invest their cash in Bitcoin as an alternative investment.

European Opening Calls:#FTSE 6518 -0.09%#DAX 14050 -0.07%#CAC 5687 +0.01%#AEX 657 +0.05%#MIB 23449 +0.10%#IBEX 8215 -0.05%#OMX 2003 +0.01%#STOXX 3668 +0.06%#IGOpeningCall