European stocks started the week's first trading day on a weak note, opening lower due to concerns in the artificial intelligence sector and the impact of sharp volatility in the precious metals market roiling global markets. The pan-European Stoxx 600 index fell 0.7% shortly after the opening bell, with mixed performances across sectors; mining and oil stocks led the declines, dropping 3% and 2.3% respectively. Major European equity indices all opened lower, with the UK's FTSE, Germany's DAX, and France's CAC 40 indices all down more than 0.5%. European markets slumped sharply on Monday, echoing a broader downturn across global markets. Asia-Pacific markets fell broadly overnight, with South Korea's main index leading the decline, as investors continued to monitor the movement of gold and silver prices following their significant drop last Friday; concurrently, U.S. stock futures declined on Sunday evening, with traders closely watching the performance of Bitcoin, which suffered a sell-off over the weekend. Bitcoin fell below the $80,000 mark on Saturday for the first time since April, highlighting that investors are further reducing risk exposure after last Friday's precious metals crash. Silver, which had more than doubled over the past 12 months, plunged approximately 30% last Friday, marking its worst single-day performance since 1980; gold also fell around 9% during the same period. Wall Street's attention is turning to Nvidia, as skepticism related to the artificial intelligence boom continues to build. According to informed sources, Nvidia's plan to invest $100 billion in OpenAI has stalled, with executives at the chip giant expressing skepticism about the deal. The European market will focus on the earnings report from Julius Baer Group today, while data-wise, attention will be on German retail sales and Spanish new car sales figures.
Comments