Risk aversion sentiment surges! Bitcoin and precious metals plummet, European stock markets face significant downturn risks

BTC1,1%

February 2 News, global market risk appetite has weakened again. Against the backdrop of uncertain artificial intelligence prospects and simultaneous declines in precious metals and cryptocurrencies, major European stock indices are expected to open lower. Data shows that the UK FTSE 100 index may fall about 0.5%, the German DAX index nearly 1%, the French CAC 40 index around 0.8%, and the Italian FTSE MIB index may also experience a similar pullback.

This trend echoes the overnight decline in Asia-Pacific markets, with South Korea’s benchmark index leading regional markets lower. Investors are closely watching the sharp volatility in gold and silver. Last Friday, silver plummeted about 30% in a single day, marking its worst performance since 1980, after having more than doubled in the previous 12 months. Gold also came under pressure, falling about 9%. The rapid correction in precious metals has accelerated funds shifting toward defensive assets.

Weakness in cryptocurrencies has also heightened market unease. Bitcoin dropped below $80,000 on Saturday, hitting a new low since April, indicating that after intense commodity volatility, funds are further reducing risk exposure. U.S. stock index futures also declined overnight Sunday, reflecting cautious sentiment among global investors.

In the technology sector, the focus is on NVIDIA. Reports indicate that the company’s proposed $100 billion investment plan in OpenAI has been put on hold, with executives remaining cautious about the deal’s prospects. This news casts a shadow over the AI boom and also puts related concept stocks under pressure.

In Europe, several key data releases and earnings reports are scheduled for today, including Swiss Julius Baer Group’s earnings, as well as German retail sales and Spain’s new car registration data. If macroeconomic data underperform expectations, it could further amplify selling pressure.

With factors such as “European stock market decline expectations,” “global market risk aversion,” and “Bitcoin and precious metals plummeting” stacking up, short-term market volatility may intensify. Investors are closely assessing new risk boundaries.

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