Global shares mostly lower after Wall St’s strong start to year cools

World shares were mostly lower, and US futures also declined on Thursday as the new year’s rally on Wall Street faded.

In Europe, Britain’s FTSE 100 fell 0.3 per cent to 10,015.45 in early trading, while the CAC 40 in Paris lost 0.2 per cent to 8,217.55. Germany’s DAX dropped 0.1 per cent to 25,097.16. The futures for the S&P 500 declined more than 0.2 per cent, and the Dow Jones Industrial Average futures dropped 0.3 per cent.

Tokyo’s Nikkei 225 dropped 1.6 per cent on Thursday to 51,117.26, with technology stocks among those leading the decline. SoftBank, which focuses on tech investments, dropped 7.6 per cent, while semiconductor equipment maker Tokyo Electron dipped 4 per cent.

Hong Kong’s benchmark Hang Seng lost 1.2 per cent to 26,149.31, although shares of OpenAI’s Chinese rival Zhipu rose as much as around 15 per cent above their offer price in the company’s trading debut.

The Shanghai Composite index fell nearly 0.1 per cent to 4,082.98. South Korea’s Kospi, which reached record high levels this week, mostly flatlined Thursday, adding less than 0.1 per cent to 4,552.37. In Australia, the S&P/ASX 200 added 0.3 per cent to 8,720.80, while Taiwan’s Taiex slid more than 0.2 per cent.

Wall Street’s optimism for the start of the year faded on Wednesday, in part after some stocks were hit by fresh comments from President Donald Trump that could bar large investors from buying single-family homes. The S&P 500 fell 0.3 per cent from an all-time high to 6,920.93. The Dow Jones Industrial Average dropped 0.9 per cent to 48,996.08. The Nasdaq composite added 0.2 per cent to 23,584.27.

Trump said on his social media network Wednesday that he would move to block large institutional investors from buying single-family homes — in an attempt to address the country’s housing affordability issue.