2026-02-02 11:48

LONDON, Feb 2 (Reuters) - By Marc Jones, Global Markets Correspondent What matters in U.S. and global markets today Sign up here. The slump in gold, silver and other precious metals is continuing to rattle global markets and making for a nervous start to the month. After Kevin Warsh's nomination as the new Fed Chair on Friday, a potent mix of margin calls, momentum selling and - at least for now - a dialing down of U.S.-Iran sabre-rattling appears to be fueling ongoing volatility in the one part of the market most prized for its safety. There is a ‌lot of red on the screens out there again and that is ahead of a week packed with corporate earnings, central bank meetings and major economic data, starting with ISM numbers out later. I’ll get into all the market news below. But first, check out Mike Dolan's latest column below on why the Warsh-Trump pairing may not be a match made in heaven. And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. METALS MELTDOWN Having zoomed up on the escalator, the worry is now that gold and silver markets are hurtling down in the lift as investors unwind their trades. Silver is currently ‌down another 5.5% and after Friday's 30% plunge is headed for its biggest two-day loss since at least the 1980s. Gold has dropped another 3.4% too after its 9% Friday meltdown marked its biggest single-day decline since 2013. Dealers say pressure on a number of silver futures funds in China added to the rout late last week and the mood hasn't been helped today by news that CME had raised margin calls on some of its key gold and silver futures contracts. Adding to the commodity crunch, oil prices are also down nearly 5% after Trump said over the weekend ‍that Iran was "seriously talking" with Washington, perhaps lessening the risk of a U.S. military strike on the country, at least in the coming days. It has all started to knock the equity markets. Wall Street's Nasdaq futures are off nearly 1% while the so-called VIX "fear gauge" is rising toward the 20 level again. About one quarter of the S&P 500 is set to report this week, and growth in earnings per share was running at 11% on the previous year, when consensus had been for ⁠7%. Scrutiny will be razor sharp on tech majors Alphabet, Amazon and AMD, particularly on their costs and how they see the benefits of AI in the wake of Microsoft's poorly received results last week. European ‍stocks are showing some signs of stabilisation - around 30% of the STOXX 600's constituents report earnings this week. But Asia saw the "bubbly" South Korean stock market tumble 5.5% as its big name chipmakers got whacked by the persistent AI ‌jitters and Hong ‌Kong's Hang Seng also fell over 2% after data over the weekend revealed China's official PMI fell back below 50 again. Japan's Nikkei also dropped more than 1% despite a brief push into the green on an opinion poll suggesting Prime Minister Sanae Takaichi's Liberal Democratic Party was likely to score a landslide victory in next week's lower house election. The coming week also has a deluge of U.S. macro data. Monday kicks things off with the January ISM manufacturing index although the main event will be Friday's non-farm payrolls report, with consumer sentiment figures and the latest Treasury’s quarterly refunding details keeping the interest up in between. Also on the menu ⁠are policy meetings by the Reserve Bank of Australia, ⁠European Central Bank and Bank of England. The RBA is an outlier in that markets imply around a 75% chance it will raise interest rates by a quarter point to 3.85%, so reversing one of three cuts delivered last year, in an attempt to quell resurgent inflation. Chart of the day It's worth acknowledging that despite the severity of the gold and silver routs, they remain comfortably higher than the already lofty positions at which they started the year. They raced higher when Washington captured Venezuelan President Nicolas Maduro and ‍then a major row blew up with Europe about Trump's proposed grab for Greenland. While that rally has hit the buffers for now, it could just be a timely correction. Deutsche Bank on Monday said it still saw the case for a gold price of $6,000 an ounce given the uncertain global outlook and European defence stocks are also still firmly in vogue. On the flip side, the dollar has risen for the last couple of days as Warsh's nomination for the Fed job has eased some of the more extreme worries about the U.S. central bank's cherished independence. And its strength - or lack of it - remains crucial ‍for all kinds of markets. Today's events to watch Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. https://www.reuters.com/business/finance/global-markets-view-usa-2026-02-02/

2026-02-02 11:24

BoE expected to hold interest rate at 3.75% this week UK inflation highest among G7 peers UK manufacturing activity strongest since August 2024 LONDON, Feb 2 (Reuters) - The pound held steady against the dollar on Monday near a multi-year high hit last week as attention focused on a Bank of England policy announcement on Thursday. Sterling was last up less than 0.1% versus the dollar at $1.3696. It hit $1.3867 last week, its highest since September 2021, but retreated on Friday as the U.S. currency strengthened after U.S. President Donald Trump nominated Kevin Warsh to lead the Federal Reserve. Sign up here. Against the euro, the pound was little changed at 86.61 pence. BANK OF ENGLAND SET TO HOLD Attention this week is on the BoE, with the central bank expected to hold its benchmark interest rate at 3.75% when it announces policy on Thursday, according to all but two economists surveyed by Reuters in a January poll. Data has remained robust since the last meeting when the central bank lowered the Bank Rate, while inflation remains the highest among Group of Seven industrialised peers, suggesting that the BoE can hold off from cutting rates for now. The last two meetings have seen rate-setters deeply divided, but the decision this time should be more straightforward. "This week we could, for once, have a boring Bank of England meeting," said Mohamad Al-Saraf, FX and fixed income associate at Danske Bank, who expects the central bank to keep the interest rate on hold. "We don't expect something major in terms of market reaction, and we don't believe it will have major implications for the pound." MANUFACTURING IMPROVING A closely watched barometer of the health of Britain's manufacturing sector, the S&P Global Manufacturing Purchasing Managers' Index, rose to its highest since August 2024 last month, a survey showed on Monday, adding to signs of a pick-up in the economy after a sluggish end to 2025. "We take encouragement from how stable the PMI has been in recent months, with the output index holding above 51.0 for three of the past four months," said Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, in an emailed note. "A broad improvement in the PMI's sub-indices in January also provides us with further encouragement that the steady momentum seen in recent months can be maintained." The data had little impact on expectations for BoE policy, with money market traders fully pricing in just one quarter-point rate cut in 2026, and around a 50% chance of a second. https://www.reuters.com/world/uk/sterling-steady-near-137-eyes-turn-boe-announcement-2026-02-02/

2026-02-02 11:20

Feb 2 (Reuters) - Futures linked to Canada's main stock index fell on Monday, pressured by a broad commodities selloff, as precious metals extended losses and oil prices slipped after U.S. President Donald Trump signaled ‌de-escalation with Iran. March futures on Toronto's S&P/TSX Composite Index were down 0.42% as of 5:45 a.m. ET, pointing to a dour start to February after the benchmark (.GSPTSE) , opens new tab registered its ninth straight monthly advance the previous month, ‌its longest winning streak since 2017. Sign up here. The TSX on Friday recorded its biggest single-day drop since April, as gold prices and mining stocks plunged after Trump picked Kevin Warsh, often viewed as hawkish, ‍to succeed Jerome Powell as the next Federal Reserve chair. Spot gold continued its fall on Monday, down 4.2%, after dropping more than 5% earlier in the session ⁠to a two-week low. Silver declined 5% as top commodity exchange ‍CME Group raised margin requirements after the collapse in metals prices last week, while ‌copper ‌retreated from a record high. Oil prices also retreated, after Trump said on Saturday that major crude producer Iran was "seriously talking" with Washington. Brent crude futures and U.S. West Texas Intermediate crude were down more than ⁠4.5% each. Trump, after ⁠threatening Canada with a 100% tariff last week, said on Saturday that the U.S. would respond in a significant way if the country proceeds with its trade agreement with China. Meanwhile, ‍Capstone Copper (CS.TO) , opens new tab said on Monday that it has resumed operations at its Mantoverde mine in northern Chile, even as a strike by a labor union representing nearly 22% of its workforce continued. FOR CANADIAN MARKETS ‍NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/business/tsx-futures-fall-commodity-rout-continues-2026-02-02/

2026-02-02 11:10

Feb 2 (Reuters) - Eldorado Gold (ELD.TO) , opens new tab said on Monday it would acquire Canada's Foran Mining (FOM.TO) , opens new tab in a deal valuing the copper-focused developer at about C$3.8 billion ($2.79 billion), adding a second near-term growth project and increasing its exposure to copper. The deal expands Eldorado's production at a time of strong gold prices and rising demand for copper, a key material used in electrification and clean energy. Sign up here. Foran shareholders will receive 0.1128 Eldorado shares plus C$0.01 per share, giving them roughly 24% of the merged company. The deal is expected to close in the second quarter of 2026. The transaction has unanimous board approvals on both sides and support agreements from senior executives, with shareholder votes scheduled by April 14, the company said. ($1 = 1.3633 Canadian dollars) https://www.reuters.com/business/eldorado-buy-foran-mining-2026-02-02/

2026-02-02 11:05

Disney drops despite beating earnings estimate Energy index falls on lower oil prices Chipmakers rally on AI optimism S&P 500 +0.54%, Nasdaq +0.56%, Dow +1.05% Feb 2 (Reuters) - The S&P 500 (.SPX) , opens new tab closed higher on Monday, lifted by gains in chipmakers and other companies related to artificial intelligence, while smaller companies also rose sharply. The Russell 2000 index (.RUT) , opens new tab jumped about 1%, with the small-cap index significantly outperforming the S&P 500 and Nasdaq (.IXIC) , opens new tab so far in 2026. Sign up here. Alphabet (GOOGL.O) , opens new tab rose 1.9% to a record high and Amazon (AMZN.O) , opens new tab added 1.5%. Both companies are set to report quarterly results this week, giving investors an additional glimpse of the race to dominate AI technology. AI-related data firm Palantir (PLTR.O) , opens new tab climbed 0.8% ahead of its quarterly report after the bell. Chipmakers benefiting from AI-related demand for their components also rallied. SanDisk (SNDK.O) , opens new tab surged 15.4%, while Advanced Micro Devices (AMD.O) , opens new tab rose 4% and Micron Technology (MU.O) , opens new tab added 5.5%. It was the S&P 500's first gain in three sessions following recent worries about pricey valuations of technology companies whose shares have soared in recent years on optimism about AI. The S&P 500 is up about 2% in 2026, lagging the Russell 2000's more than 6% rally. Investors often view gains in small-cap stocks as a reflection of confidence in the economy. "The fundamentals are good and earnings are strong. We have positive surprises both for revenues and earnings, pretty much across the board," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. Analysts expect S&P 500 companies to have grown their earnings nearly 11% in the December quarter, up from an estimate of about 9% at the start of January, according to LSEG. Technology-related companies are driving most of that growth. Walt Disney (DIS.N) , opens new tab tumbled 7.4%, despite posting quarterly earnings above Wall Street expectations, as it warned of a decline in international visitors to its U.S. theme parks and a slump in earnings at its TV and film division. The S&P 500 climbed 0.54% to end the session at 6,976.44 points, just short of its record high close of 6,978.60 last Tuesday. The Nasdaq gained 0.56% to 23,592.11 points, while the Dow Jones Industrial Average rose 1.05% to 49,407.66 points. Volume on U.S. exchanges was heavy, with 20.1 billion shares traded, compared to an average of 19.4 billion shares over the previous 20 sessions. U.S. factory activity grew for the first time in a year in January, PMI data showed. The CBOE VIX (.VIX) , opens new tab, a volatility index also known as Wall Street's "fear gauge," dropped 1 point to 16.5. During the session, it touched a near two-week high. The S&P 500 energy sector index (.SPNY) , opens new tab dropped 2% as oil prices slid. U.S. President Donald Trump said Iran was "seriously talking" with Washington, comments that hinted at de-escalation and eased fears of supply disruptions. Lower energy prices boosted airline shares. United Airlines (UAL.O) , opens new tab, JetBlue (JBLU.O) , opens new tab, Delta Air Lines (DAL.N) , opens new tab and Southwest (LUV.N) , opens new tab all rallied between 4% and 8%. The House of Representatives took up legislation to lift a partial government shutdown that began on Saturday, with a final vote expected on Tuesday. The Bureau of Labor Statistics said the closely watched employment report for January would not be released on Friday due to the partial shutdown. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 1.4-to-one ratio. The S&P 500 posted 30 new highs and 9 new lows; the Nasdaq recorded 160 new highs and 217 new lows. https://www.reuters.com/business/us-stock-futures-slide-commodity-rout-rattles-markets-2026-02-02/

2026-02-02 10:56

COPENHAGEN, Feb 2 (Reuters) - Shares in Danish jewellery maker Pandora rose more than 8% on Monday on the back of a historic slump in silver prices. A rout in gold and silver intensified on Monday after a collapse in metals prices last week, driven by fears stemming from Kevin Warsh's nomination as the next Federal Reserve chair and a subsequent increase in margin requirements by CME Group. Sign up here. Some analysts view Warsh as being more hawkish, which would signal that interest rates would stay higher for longer, supporting the dollar and raising the opportunity cost of gold and silver, dimming their appeal. The collapse in silver prices delivered a boost to Pandora, where recycled silver makes up about 67% of its raw materials, according to the company's 2024 annual report. Spot silver tumbled 12% on Monday after plunging 27% Friday in its worst day on record. It has shed about 40% since its all-time peak last week. "The sharp increase in the silver price (prior to recent declines) has been a key concern in the market over the last couple of months as Pandora could be facing a significant margin headwind in 2027," Jyske Bank analyst Janne Vincent Kjaer said in an emailed comment. "The set-back in silver therefore comes as a relief for investors, despite the silver prices still trading at historical highs," she said. Pandora has locked in much of its silver costs for 2026, it said in its earnings report for the third quarter. Its stock sank 50% last year as U.S. tariffs on imports and the surging price of silver added to its costs, while shoppers were more cautious about spending on non-essentials. New CEO Berta de Pablos-Barbier has said the company would focus on developing new product lines and materials to reduce its commodity exposure. https://www.reuters.com/business/pandora-shares-surge-after-price-silver-falls-2026-02-02/