Markets Today: German factory orders surge, silver slumps, NFP release delayed as BoE & ECB Meeting lie ahead

On Thursday, stock markets across Asia dropped significantly. The move came about because market participants are becoming worried about the massive amounts of money big companies are spending on Artificial Intelligence (AI).

Instead of sticking with tech stocks, many people are moving their money into different industries. At the same time, the price of silver fell again, creating extra financial pressure for investors who had borrowed money to bet on its price rising.

Most Read: Rebalancing continues as Tech dives – Dow Jones & US Index Outlook

The tech slump was triggered by news from major companies. Alphabet (the parent company of Google) reported good profits, but investors were shocked to learn the company plans to spend between $175 billion and $185 billion this year, much more than experts expected.

Meanwhile, the chipmaker AMD saw its stock price crash by 17% after its financial results disappointed the market.

These losses were felt throughout the region.

South Korea’s main market index fell nearly 4%, and Taiwan’s market also dropped, though its banking and real estate sectors managed to do well.

In Japan, the Nikkei index also fell, even though some specific areas like healthcare and utilities actually saw gains.

Overall, the day reflected a growing nervousness about whether the huge investments in AI will actually pay off.

In December 2025, German factory orders jumped by 7.8%, which surprised experts who expected a decline. This was the fourth month in a row that orders increased and the best performance the country has seen in two years. Much of this growth came from big orders for metal products, machinery, and electrical equipment.

However, not every part of the economy did well. There was less demand for vehicles like planes, trains, and military equipment, and the car industry also saw a drop in orders. When looking at the types of goods, products used for business investment and manufacturing rose, while everyday items for regular shoppers fell.

Most of the new business came from within Germany or from countries outside of Europe. Orders from neighboring European countries actually dropped slightly. It is important to note that a few very large, one-time contracts made these numbers look especially strong; without those big deals, orders only grew by a small amount (0.9%).

Still, the final three months of 2025 ended on a very positive note for German factories.

European stock markets stayed mostly flat on Thursday morning. Investors were busy looking at mixed financial reports from big companies like Shell and BNP Paribas. At the same time, many people were waiting carefully to see what the European Central Bank would decide about interest rates later in the day. Because inflation seems to be slowing down faster than expected, everyone is listening closely for hints about when interest rates might finally drop.

The banking sector saw very different results. BNP Paribas, the largest bank in the region, saw its stock price jump over 4% because it made more profit than people expected. However, the Spanish bank BBVA saw its stock fall by 4%, even though it still made a good profit.

Meanwhile, the oil company Shell saw its stock price dip because its earnings weren't as high as experts had hoped.

On a brighter note, technology stocks in Europe bounced back, rising 2%. This helped balance out the losses in other areas. This tech recovery happened partly because the market was recovering from earlier losses and because Google’s parent company, Alphabet, reported positive news in the United States.

Even with all these ups and downs, the main European stock index stayed very close to the record high it reached just the day before.

On the FX front, the US dollar rose to its highest value in two weeks because investors were nervous about sudden price swings in the stock market and precious metals.

The dollar index, which compares the US currency to six other major world currencies, went up for the second day in a row.

Meanwhile, the euro fell slightly as people waited for the European Central Bank to announce its latest decision on interest rates. Most experts believe the bank will keep rates the same, so investors are listening closely to what officials say about the future.

The dollar also gained value against the Japanese yen. Previously, the dollar had dropped to a three-month low after the US and Japan hinted they might step in to strengthen the yen.

However, with a major election coming up this Sunday in Japan, investors are feeling anxious, causing the dollar to jump back up and recover most of those recent losses. Against the Chinese yuan, the dollar stayed mostly steady following a phone call between the U.S. and Chinese presidents where they discussed trade and security issues.

In the world of digital money, cryptocurrencies continued to lose value, reaching their lowest prices since late 2024. Bitcoin saw a sharp drop, falling over 3% at one point to around $70,000 before settling a bit higher. Ether also struggled, though it managed to recover some of its losses after hitting a low point overnight.

Overall, it was a day where investors moved away from "risky" assets like crypto and back toward the safety of the US dollar.

Currency Power Balance

Prices for popular materials like silver, gold, oil, and copper all dropped sharply. This happened largely because global tensions began to calm down.

Market participants felt more relaxed after a "very positive" phone call between US President Donald Trump and Chinese President Xi Jinping.

Additionally, news that the US is planning to hold talks with Iran later this week further reduced fears of conflict, which usually causes these prices to spike.

Silver was hit the hardest, with its price crashing by almost 15%. Gold, oil, and copper also saw their values fall by about 2%. Another reason for this drop is that the US dollar became stronger. Since most of these commodities are bought and sold using dollars, a stronger dollar makes them more expensive for people using other currencies, which often leads to lower prices.

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The day ahead is a busy one with the ECB and BoE meetings coming up shortly..

Later in the US session we will get some US data as well as the much anticipated Amazon earnings release after market close.

US data will once again be delayed this week with the US bureau of labor statistics confirming that the NFP data release will be postponed to Wednesday February 11, 2026. The only positive being that the delay is not a big one and data will not be skipped as we saw in the backend of 2025.

Following the sharp decline on Thursday morning, February 5, 2026, the technical outlook for silver (XAG/USD) has shifted back to a bearish (downward) bias in the short term.

The morning's plunge essentially wiped out a two-day recovery attempt, signaling that sellers are still in control.

Key Technical Levels

• Immediate Support: The market is looking at the $74.00 to $71.00 range as a critical "floor." If silver drops below $71.30 (the recent monthly low), it could trigger another wave of forced selling toward $64.00.
  
• Key Resistance: To regain any "bullish" (upward) momentum, silver needs to climb back above $83.10 and eventually break the $87.00 - $90.50 zone. This area is now a heavy ceiling where many investors are looking to sell on any price bounces.

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