Panic Eases, European Stocks Return to the Green
European stocks rose on Tuesday (February 3rd), following global markets that began to stabilize after a brief shock in crypto and precious metals. Market participants appeared to be returning to riskier assets as volatility eased, following the sharp swings of the past few days.
Early in trading, the pan-European Stoxx 600 index rose around 0.6%, with most sectors trading in the green. The most notable gains came from the mining sector: Stoxx Basic Resources surged 1.8% as precious metals began to recover from the previous extreme sell-off.
Major stock markets also traded in a positive mood. The UK's FTSE 100 remained slightly flat, while Germany's DAX and France's CAC 40 each rose more than 0.4%. Investors assessed that selling pressure in global markets was easing after gold, silver, and Bitcoin were under severe pressure on Friday and over the weekend.
Sentiment was also helped by a recovery in precious metals on Monday, which helped ease concerns that the commodity shock would spread more broadly to equity markets. Despite this, market participants remain selective as volatility has not yet fully subsided.
In the corporate realm, news emerged from the clean energy sector: a US judge ruled that Danish offshore wind energy company Ørsted can resume the Sunrise Wind project off the coast of New York, which was previously halted by the Trump administration. This ruling also paves the way for other offshore wind projects that had been put on hold by the White House to resume.
Despite this positive news, Ørsted shares actually weakened by around 1% in trading, indicating that the market is still weighing the risks and prospects of the project, including regulatory and cost factors.
Source: Newsmaker.id
