European stocks set for sharp declines as AI and precious metals volatility weighs

Sharp Declines Expected in European Stocks

European stock markets are bracing for significant drops as concerns over artificial intelligence and precious metals volatility dominate global markets. The U.K.'s FTSE index is projected to open 0.5% lower, with Germany's DAX expected to fall nearly 1%, France's CAC 40 down by 0.8%, and Italy's FTSE MIB seeing a similar decline. This comes amid broader market instability across Asia-Pacific, particularly in South Korea, where benchmarks have shown notable drops.

Meanwhile, U.S. stock futures experienced late-night declines as traders monitor Bitcoin's recent dip below $80,000 for the first time since April. This drop follows a weekend sell-off and reflects heightened risk aversion among investors. Precious metals like gold and silver have also been impacted, with silver experiencing a 30% drop on Friday—the worst performance since 1980—and gold falling by approximately 9%.

Wall Street is closely watching developments involving Nvidia, as questions about the company's investment in OpenAI have cast doubt over its strategic decisions. Additionally, Julius Baer Group is set to release earnings later today, while German retail sales and Spanish new car sales data are also due.