Global equities hit records as metals rebound

​​​Japan and Asia lead gains

​The Nikkei 225 jumped nearly 4% to a fresh record, its strongest daily gain in months. Investors returned after the precious metals sell-off paused, driving broad-based buying across Japanese equities.

​South Korean equities rallied sharply, powered by chipmakers Samsung and SK Hynix. The semiconductor sector's strength reinforced Asia's leadership in the latest leg higher, with technology stocks driving regional gains.

​European shares climbed to new all-time highs, with the Stoxx 600 led by basic resources and technology stocks. Risk appetite improved as the pause in commodity selling reduced fears of broader market contagion.

​Strength in United States (US) and Asian technology stocks continued to underpin global equity gains. Semiconductors and artificial intelligence (AI)-linked names remained particularly strong, maintaining their role as key drivers of market sentiment.

​Precious metals recover sharply

​Gold rose close to 5% on the day, recovering part of the sharp losses seen over the past two sessions. The rebound came after Friday's 9% plunge, the steepest one-day drop since 1983.

Silver gained more than 7%, though the metal remains well below last week's highs. The recovery followed Monday's record 27% single-day decline, highlighting how stretched positioning has left metals vulnerable to sharp swings.

​A softer US dollar provided a tailwind for metals, making prices more attractive for non-US buyers. The weaker greenback helped support the rebound across the commodity complex.

​Despite the recovery, volatility remains elevated. The sharp moves in both directions underscore that positioning remains crowded and that further swings are likely in the near term.

​Copper joins the rally

​Copper prices climbed more than 4%, moving back toward $13,500 a tonne. Demand tied to electrification and AI infrastructure remains robust, providing fundamental support for industrial metals.

​The copper rebound helped lift the broader industrial metals complex. Base metals had fallen sharply during Monday's selloff, but recovered alongside precious metals as risk appetite improved.

​Chinese demand ahead of the Lunar New Year holiday on 15 February provided additional support. End-user buying typically picks up before the holiday shutdown, offering a near-term floor under prices.

​The recovery in copper prices benefited mining companies with significant base metal exposure. Glencore and Rio Tinto both advanced as industrial metal prices stabilised.

​UK miners benefit from commodity rebound

​The FTSE 100 was lifted by gains in miners including Fresnillo, Antofagasta, Glencore and Rio Tinto. These stocks had suffered heavy losses during Monday's commodity rout but recovered as metal prices rebounded.

​Fresnillo, a primary silver producer, benefited particularly from silver's 7% gain. The stock had fallen close to 10% on Monday but recovered a portion of those losses as precious metals stabilised.

​Antofagasta, focused on copper production, advanced as copper prices climbed back above $13,000 a tonne. The Chilean miner's share price tends to track copper closely, making it sensitive to industrial metal moves.

​Anglo American also recovered from Monday's decline. The diversified miner has exposure to platinum group metals, copper and iron ore, providing a mix of industrial and precious metal price sensitivity.

​FTSE 100 lags tech-heavy peers

​UK equities underperformed broader European and US futures. The FTSE 100's limited technology exposure capped upside even as global tech stocks drove gains elsewhere.

​The Stoxx 600's stronger performance reflected Europe's greater weighting in technology and semiconductor stocks. These sectors led the rally, leaving indices with heavier tech exposure outperforming.

​The FTSE 250 rose more than the blue-chip index, led by AG Barr after its acquisitions and Plus500 on its move into US prediction markets. Mid-caps often provide more domestic and sector-specific exposure than the internationally-focused FTSE 100.

​Defensive sectors offered support during periods of metal price volatility. Healthcare, utilities and consumer staples cushioned the FTSE 100, preventing larger declines when commodity prices wobbled.

​China's role in stabilising gold

​Dip-buying in gold by Chinese investors ahead of the Lunar New Year helped stabilise sentiment after the recent sell-off. Chinese demand has historically provided support during precious metal declines.

​Chinese state-owned banks have begun tightening oversight of gold investment activity in response to heightened price swings. This suggests authorities are concerned about speculative excesses in domestic gold markets.

​The Lunar New Year holiday starting 15 February typically sees increased gold buying in China for jewellery and gifts. This seasonal demand pattern provides near-term support for prices.

​China remains the world's largest gold consumer. Any shift in Chinese buying patterns can have significant impacts on global gold prices, making monitoring of Chinese demand crucial.

​Volatility remains elevated

​The pause in the commodity rout reduced fears of broader contagion across asset classes. This encouraged investors back into equities after Monday's risk-off move.

​However, the sharp moves in metals underline that positioning remains crowded. When too many traders hold the same positions, even small triggers can cause outsized moves in either direction.

​Silver's continued weakness relative to last week's highs demonstrates the damage from forced liquidations. The metal needs time to establish a new trading range before attempting sustained recovery.

​Cautious optimism remains the prevailing mood. While markets have stabilised, the speed and scale of the recent moves serve as a reminder that volatility can spike quickly when positioning unwinds.