Precious metals rout triggers global equity slide ahead of major central bank decisions
A sharp drop in silver and gold sparked global selling on Monday. Markets fell as investors braced for a week of major earnings and central bank decisions.
Insights:
A chaotic sell-off in precious metals markets triggered a broad risk-off move across global financial markets on Monday. This volatility was led by a sharp intra-day plunge in silver which lost 10% at one stage following a massive 30% drop last Friday. The turmoil in metals prices spilled over into equity futures and commodity markets just as investors prepared for a week packed with corporate earnings, central bank meetings, and key economic data.
Asian shares fell following weakness in United States 
USequity futures with the MSCI broadest index of Asia-Pacific shares outside Japan 
JPsinking 2.8%. In South Korea 
KRthe KOSPI index fell 5.5% representing its biggest one-day loss since April of the previous year. Chinese 
CNblue chips lost 1.0% while Japansaw the Nikkei fall 1.0% amid an opinion poll suggesting Prime Minister Sanae Takaichi sanae takaichiand her Liberal Democratic Party were likely to score a landslide victory in next week's lower house election. Analysts noted an electoral win for Sanae Takaichiwould likely make it easier to push through aggressive stimulus policies but could pressure bonds and the yen via more debt-funded spending.
USequity futures with the MSCI broadest index of Asia-Pacific shares outside Japan JPsinking 2.8%. In South Korea KRthe KOSPI index fell 5.5% representing its biggest one-day loss since April of the previous year. Chinese CNblue chips lost 1.0% while Japansaw the Nikkei fall 1.0% amid an opinion poll suggesting Prime Minister Sanae Takaichi sanae takaichiand her Liberal Democratic Party were likely to score a landslide victory in next week's lower house election. Analysts noted an electoral win for Sanae Takaichiwould likely make it easier to push through aggressive stimulus policies but could pressure bonds and the yen via more debt-funded spending.
