Global shares showed a mixed performance on Thursday, the first day of trading for 2025. While France's CAC 40 dropped 0.5% and China's benchmarks experienced losses of more than 2%, Germany's DAX rose 0.2% and Britain's FTSE 100 remained virtually unchanged.
Investors are approaching the market cautiously amid uncertainties surrounding the upcoming presidency of Donald Trump. Concerns about potential tariff hikes on imports from China and other Asian countries are contributing to market volatility.
In China, the Shanghai Composite index fell 2.7% and the Hang Seng in Hong Kong dropped 2.2%. A recent survey indicated a slowdown in factory activity, with the Caixin China Purchasing Managers Index declining to 50.5 in December from 51.5 in November.
Chinese leader Xi Jinping's New Year's address, emphasizing policies for high-quality development and the country's economic rebound, did little to boost market optimism.
Elsewhere in the Asia-Pacific region, Australia's S&P/ASX 200 rose 0.5% while South Korea's Kospi remained flat.
On the economic front, investors are awaiting updated U.S. construction spending data for November and manufacturing numbers for December, which are set to be released later this week.
The U.S. stock market closed mostly lower on Tuesday, marking the end of a record-breaking year driven by a strong economy, robust consumer spending, and a healthy job market. Companies in the artificial intelligence sector, such as Nvidia and Super Micro Computer, played a significant role in propelling the market to new highs.
As the Federal Reserve adopts a more cautious stance in light of persistent inflation and the impending transition to a new administration, concerns about potential tariff-related inflation remain high.
In energy trading, benchmark U.S. crude oil rose to $71.98 a barrel, while Brent crude reached $74.85 a barrel. The U.S. dollar weakened slightly against the Japanese yen and the euro.
