European stock markets opened lower on Monday, as a sharp sell-off in precious metals unsettled investors at the start of a week packed with corporate earnings, central bank decisions, and key economic data.
By 03:05 ET (08:05 GMT), Germany’s DAX slipped 0.4%, France’s CAC 40 fell 0.5%, and the UK’s FTSE 100 declined 0.6%.
Precious metals slump weighs on sentiment
Market sentiment took a hit as gold and silver extended their losses, adding to Friday’s steep sell-off. The drop followed the nomination of Kevin Warsh as the next Federal Reserve chair, which boosted the U.S. dollar and prompted widespread profit-taking. The move ended a powerful rally that had pushed precious metals to record highs just days earlier.
Spot gold fell nearly 6% to $4,597 per ounce on Monday, after plunging almost 10% on Friday. That marked its sharpest single-day decline since 1983.
Silver also remained under heavy pressure after last Friday’s 30% collapse, its worst daily performance since March 1980. The metal had previously surged on safe-haven demand and speculative inflows.
Adding to the strain, the CME Group announced higher margin requirements for several metals contracts, effective after Monday’s close. The move raised concerns that some investors may be struggling to meet margin calls, potentially forcing further asset sales.
Intesa Sanpaolo lifts earnings mood
Attention also turned to corporate results, with earnings season set to intensify. Around 30% of the Euro STOXX index’s market capitalisation is scheduled to report results this week.
Italian lender Intesa Sanpaolo reported a 7.6% increase in net profit for 2025, reaching €9.3 billion. The bank also unveiled plans to return €8.8 billion to shareholders through dividends and share buybacks, reinforcing its status as one of Europe’s most profitable banks.
Meanwhile, Swiss wealth manager Julius Baer posted a 2025 net profit of CHF764 million, down 25% from the previous year but slightly above market expectations.
On Wall Street, investors are closely watching upcoming earnings from Alphabet and Amazon. Sentiment toward AI-related stocks has weakened following results from Microsoft, which flagged rising costs linked to heavy investment in artificial intelligence.
German data and central banks in focus
Economic data released earlier showed German retail sales rose 0.1% in December from the previous month, rebounding from a 0.5% decline in November.
Manufacturing PMI data for January are due later in the session across the euro zone and are expected to show a modest improvement, although activity is likely to remain in contraction territory.
Over the weekend, China reported another decline in its official manufacturing PMI for January, with the index slipping further below the 50 threshold, underscoring ongoing weakness in domestic demand.
Both the European Central Bank and the Bank of England are scheduled to hold policy meetings this week. Markets expect both institutions to leave interest rates unchanged.
Oil prices fall as geopolitical risks ease
Oil prices dropped sharply on Monday as concerns over a potential U.S. military strike on Iran eased. The move followed comments from U.S. President Donald Trump, who said Iran was “seriously talking” with Washington.
Brent crude futures slid 4.8% to $65.97 per barrel, while U.S. West Texas Intermediate crude fell 5% to $61.91.
Crude prices had surged last week as markets priced in a higher risk of supply disruptions after Trump repeatedly threatened Iran with military action over nuclear negotiations and ongoing protests.
However, those risks diminished after his weekend remarks. Meanwhile, OPEC+ agreed to keep oil production levels unchanged at a meeting over the weekend, in line with expectations.
