- The European market, after initial hesitation at the start of the session, turned decisively higher. Nearly all major indices across the Old Continent are posting gains.
- The strongest performers are the IBEX (+1%), SMI (+1%), and DAX (+0.8%).
- The CAC 40 (+0.5%) and FTSE 100 (+0.7%) are also moving higher.
- The broad EURO STOXX index is gaining 0.6%.
- Investors received a solid batch of macroeconomic data from Europe. Markit published January manufacturing PMI readings for European countries:
- Poland: 48.8 (expected: 49; previous: 48.5)
- Switzerland: 48.8 (expected: 47.9; previous: 45.8)
- France: 51.2 (expected: 51; previous: 50.7)
- Germany: 49.1 (expected: 48.7; previous: 45.8)
- Switzerland also released retail sales data. Excluding seasonal effects, December sales increased by 2.9%, compared to expectations of 2%.
- In the United Kingdom, manufacturing PMI came in at 51.8 versus expectations of 51.6. UK house prices rose by 0.3% in January.
- Mining companies and precious metals–related stocks are under pressure following Friday’s sharp sell-off in the precious metals market. Fresnillo is down 3%, KGHM is losing 7%, and Rio Tinto is declining by more than 1%.
- Keir Starmer has declared the UK’s intention to join a joint fund aimed at developing the defense industry.
- Major declines are visible among video game producers. Following the release of the new Gemini 3 model, which is reportedly capable of independently developing video games, Ubisoft shares are down 3%.
- Deutsche Bank analysts warn that asset allocation structures among institutional investors are shifting, pointing to a deterioration in risk sentiment. Insider selling has reached its highest levels since 2021.
- Gold and silver are attempting to stabilize after recent losses. Silver prices are moving back above $80 per ounce, while gold is trading above $4,700.
- Energy commodities are experiencing significant declines. After the anticipated attack on Iran failed to materialize over the weekend, the market has priced out part of the geopolitical risk premium. Oil prices are down approximately 5%, with WTI crude trading around $62 per barrel. Natural gas is also declining, as new, significantly milder (warmer) weather forecasts are putting downward pressure on prices.
- Notable moves are visible in the FX market:
- The Swiss franc is down 0.7% against the U.S. dollar and 0.4% against the euro.
- The Canadian dollar is weakening by 0.3% against the U.S. dollar.
- The euro is down 0.2% against both the U.S. dollar and the Japanese yen.
- The crypto market is recovering part of its recent losses. Ethereum has moved back above $2,300, while Bitcoin is holding the $77,000 level.
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