European Stocks Slide as Precious Metals Crash Hits Mining and Tech Sectors
European stocks opened the week on a sour note, as investors reacted to volatility in precious metals and growing concerns about artificial intelligence. The pan-European Stoxx 600 index fell 0.7% shortly after the opening bell, with losses led by the mining sector. Europe’s basic resources index dropped 3.3%, marking its largest one-day fall in nearly ten months. Major mining companies, including Glencore and Anglo American, saw their shares tumble 4% and 3.3%, respectively.
All the region’s key bourses also opened lower. The U.K.’s FTSE 100, Germany’s DAX, and France’s CAC 40 each fell more than 0.5%, reflecting broad investor caution. European semiconductor stocks were similarly pressured, with chipmaker ASML down 4%, Be Semiconductor down 4%, and ASM International down 3.7%. Analysts say tech and mining sectors are particularly sensitive to swings in investor sentiment and commodity prices.
The sell-off in European markets follows dramatic movements in precious metals last week. Silver, which had more than doubled over the past year, fell about 30% on Friday, its worst single-day decline since 1980. Gold also dropped sharply, with spot gold losing 4.5% to $4,648 per ounce on Monday. Silver continued to slide, down 6.5% at $79 per ounce. These sharp declines prompted investors to reduce exposure to riskier assets worldwide.
Markets in Asia-Pacific and the U.S. also showed early weakness. South Korea led regional losses overnight as traders tracked falling gold and silver prices. U.S. stock futures slid on Sunday night, while bitcoin dipped below $80,000 for the first time since April, signaling a broader shift toward caution after a turbulent week in commodities.
Investors are also watching corporate developments closely. Nvidia, a key player in the AI boom, saw uncertainty arise after reports that its $100 billion investment in OpenAI may stall. Meanwhile, European earnings from Julius Baer Group and data on German retail sales and Spanish car sales are expected later in the week, offering additional signals on economic momentum across the continent.
source: cnbc