World shares mixed after US stocks retreat

Shares have opened higher in Europe but retreated in Asia after US stocks sank to their first loss in eight days.

The price of gold, which topped $4,000 per ounce for the first time on Tuesday, continued to rise, trading up nearly $58 at $4,062.10. Investors have traditionally seen gold as a hedge against high inflation. Its price has soared more than 50 per cent this year because of governments’ huge debt loads, political uncertainties and anticipation that the Fed will cut interest rates.

In France, the CAC 40 gained 0.6 per cent to 8,021.50 as departing Prime Minister Sébastien Lecornu, aiming to calm the political storm triggered by his resignation on Monday less than 24 hours after unveiling his ministers, raced to beat a deadline Wednesday to break a deadlock caused by his decision to quit. Germany’s DAX rose 0.3 per cent to 24,455.12, while the FTSE 100 also rose 0.3 per cent, to 9,513.67. The futures for the S&P 500 and the Dow Jones Industrial Average were 0.2 per cent higher.

The US dollar has risen against the euro, thanks to the upheavals in France, and also against the Japanese yen. The yen has fallen sharply on expectations that Sanae Takaichi, the conservative lawmaker likely to become the next prime minister, will push to keep interest rates low. The dollar rose to 152.45 yen from 151.90 yen early Wednesday, while the euro slipped to $1.1625 from $1.1659.

Tokyo’s benchmark Nikkei 225 shed 0.5 per cent to 47,734.99. It had jumped to new records earlier this week after the ruling Liberal Democrats chose Takaichi as their leader last weekend. She is expected to increase spending and to advocate for easier credit, possibly slowing efforts by the Bank of Japan to raise its key interest rate.