Stock market today: Global shares are mixed after New Year holiday. Chinese shares sink

[January 02, 2025]  By YURI KAGEYAMA

TOKYO (AP) — Global shares were mixed on Thursday, the first day of trading for 2025, with losses of more than 2% in Chinese benchmarks.

France's CAC 40 dropped 0.5% to 7,346.33, while Germany's DAX rose 0.2% to 19,947.91. Britain's FTSE 100 was virtually unchanged at 8,174.85.

The futures for the S&P 500 and the Dow Jones Industrial Average were 0.4% higher.

Investors remain cautious over what U.S. President-elect Donald Trump might do once he takes office, including raising tariffs on imports from China and other Asian countries.

The Shanghai Composite index dropped 2.7% to 3,262.56 and the Hang Seng in Hong Kong fell 2.2% to 19,623.32.

A survey of factory managers, the Caixin China Purchasing Managers Index, showed activity expanding at a slower pace in December as the index fell to 50.5 from 51.5 in November, on a scale where readings above 50 show expansion. New orders, employment and business sentiment weakened.

Upbeat talk by Chinese leader Xi Jinping in a New Year's address did little to raise optimism among market players who are hoping for more aggressive action to support the economy and boost share prices.

“We have adopted a full range of policies to make solid gains in pursuing high-quality development. China’s economy has rebounded and is on an upward trajectory,” Xi said in a New Year message, according to the official Xinhua News Agency.

Elsewhere in the Asia-Pacific, Australia's S&P/ASX 200 rose 0.5% to 8,201.20 and South Korea's Kospi was flat at 2,398.94.

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Dec. 13, 2024. (AP Photo/Ahn Young-joon, File)

On Wednesday, markets were closed on Wall Street for the New Year’s Day holiday, as were nearly all other world markets.

Investors will get an updated snapshot of U.S. construction spending for November on Thursday, while U.S. manufacturing numbers for December will be released Friday.

U.S. stock indexes closed mostly lower Tuesday as the market delivered a downbeat finish on the final day of another milestone-shattering year on Wall Street.

The U.S. markets’ stellar run was driven by a growing economy, solid consumer spending and a strong jobs market.

Skyrocketing prices for companies in the artificial intelligence business, such as Nvidia and Super Micro Computer, helped lift the market to new heights.

After three interest rate cuts in 2024, the Fed has signaled a more cautious approach heading into 2025 with inflation remaining sticky as the country prepares for Trump's transition into the White House. Trump’s threats to hike tariffs on imported goods have raised anxiety that inflation could be reignited as companies pass along the cost of tariffs.

In energy trading, benchmark U.S. crude oil rose 26 cents to $71.98 a barrel. Brent crude, the international standard, added 28 cents to $74.85 a barrel.

The U.S. dollar slipped to 156.79 Japanese yen from 157.24 yen. The euro cost $1.0368, up from $1.0359.

All contents © copyright 2024 Associated Press. All rights reserved