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LONDON — European stocks are bracing for a steep pullback at the open, as renewed global market anxiety ripples across equities, commodities, and cryptocurrencies, pushing investors firmly into risk-off mode.

According to early indications from IG, the U.K.’s FTSE 100 is set to fall roughly 0.5%, Germany’s DAX is projected to slide close to 1%, while France’s CAC 40 and Italy’s FTSE MIB are both expected to decline around 0.8%. The synchronized weakness reflects a broader downturn across global markets following heavy losses in precious metals and fresh uncertainty surrounding the artificial intelligence investment cycle.

Europe Tracks Global Losses

The negative tone in Europe follows a turbulent session across Asia-Pacific markets overnight. South Korea led regional declines, with benchmark indexes falling sharply as investors reacted to dramatic moves in gold and silver late last week. Japanese and Australian equities also traded lower, while Hong Kong and mainland China markets struggled to find direction amid thinning liquidity and cautious sentiment.

U.S. stock futures were already under pressure by Sunday evening, signaling a soft Wall Street open. Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all pointed lower as traders digested weekend losses in bitcoin and reassessed exposure to high-growth assets.

Market participants say the current bout of volatility is being driven by a combination of profit-taking, stretched valuations, and growing concern that parts of the rally fueled by artificial intelligence optimism may have moved too far, too fast.

Bitcoin Slides Below $80,000 as Risk Assets Retreat

Cryptocurrencies added to the uneasy backdrop. Bitcoin dropped below $80,000 on Saturday for the first time since April, extending a weekend sell-off that erased billions in market value. The move was widely seen as a sign that investors are pulling back from speculative assets following sharp declines in other risk-sensitive markets.

Digital asset analysts noted that bitcoin had surged more than 60% earlier this year, making it vulnerable to rapid corrections once broader market sentiment turned defensive. Ether and other major cryptocurrencies also traded lower, amplifying concerns that momentum across alternative assets is fading.

Precious Metals Suffer Historic Losses

The most dramatic moves came in precious metals.

Silver, which had more than doubled over the past 12 months amid strong industrial demand and safe-haven buying, plunged roughly 30% in a single session on Friday. That marked its worst one-day percentage drop since 1980, wiping out weeks of gains in just hours.

Gold also suffered a sharp reversal, falling about 9% as investors rushed to lock in profits following its recent record highs. Spot gold had climbed more than 20% over the past year, supported by central bank purchases, geopolitical tensions, and expectations of future interest rate cuts. Friday’s sell-off suggests that even traditional safe havens are not immune during periods of forced deleveraging.

Commodities strategists say the scale of the moves points to margin calls and systematic selling, rather than a sudden shift in long-term fundamentals.

AI Optimism Faces Fresh Scrutiny

Adding to market nerves, attention has turned back to Nvidia and the broader artificial intelligence sector.

Reports indicate that Nvidia’s proposed $100 billion investment into OpenAI has stalled, with senior executives at the chipmaker reportedly expressing doubts about the structure and scale of the deal. The development has raised new questions about how sustainable current AI-related capital spending really is, particularly after tech stocks delivered outsized gains over the past year.

Nvidia has been at the center of the AI boom, with its shares rising several hundred percent since early 2023 as demand for high-performance chips surged. Any hesitation around large-scale investments is now being closely watched as a potential signal that the pace of AI expansion could moderate.

Equity analysts note that global technology valuations remain elevated, leaving the sector especially sensitive to changes in earnings expectations or capital expenditure plans.

Key European Data and Earnings in Focus

On the European calendar, investors will be watching earnings from Julius Baer Group later today, with the Swiss wealth manager’s results expected to provide insight into client activity and asset flows amid recent market turbulence.

Several economic data releases are also due, including German retail sales figures and Spanish new car registrations. The reports will offer a snapshot of consumer demand across major euro zone economies at a time when high interest rates and sticky inflation continue to pressure household spending.

Looking ahead, traders are preparing for a busy week that includes additional corporate earnings, updated inflation readings, and commentary from central bank officials, all of which could shape expectations for monetary policy into the second quarter.

Volatility Returns to Center Stage

With equities, commodities, and cryptocurrencies all moving sharply in tandem, investors are being reminded how quickly sentiment can shift in today’s interconnected markets.

Strategists say the coming sessions will be critical in determining whether this sell-off develops into a deeper correction or stabilizes once forced selling subsides. For now, European markets appear set to open firmly in the red, reflecting a broader reassessment of risk as the global rally shows signs of strain.