HONG KONG (AP) — European markets opened higher on Wednesday while Asian stocks followed Wall Street lower as momentum cooled for the torrid “Trump trade” that swept U.S. markets following Donald Trump’s presidential victory.
Germany’s DAX edged 0.2% to 19,067.59. In Paris, the CAC 40 added 0.2% to 7,242.33. The U.K.’s FTSE 100 also rose 0.1%, to 8,035.44.
The futures for the S&P 500 were 0.2% higher and those for the Dow Jones Industrial Average were up 0.3%.
Japan’s benchmark Nikkei 225 slipped 1.7% to 38,721.66, as wholesale inflation reached its highest level since July of last year. The corporate goods price index, which measures the price changes of goods traded in the corporate sector, rose 3.4% in October year-over-year, according to Bank of Japan data. The increase was partly attributed to the decline of the Japanese yen against the U.S. dollar.
South Korea’s Kospi lost 2.6% to 2,417.08. Samsung Electronics shares fell by 4.5% in Wednesday trading, reaching their lowest level in over four years.
Hong Kong’s Hang Seng dropped for a fourth day, declining 0.1% to 19,823.45. The Shanghai Composite gained 0.5% to 3,439.28.
Australia’s S&P/ASX 200 fell 0.8% to 8,193.40.
On Tuesday, the S&P 500 slipped 0.3% to 5,983.99, a day after setting its latest all-time high. The Dow Jones Industrial Average dropped 0.9% to 43,910.98, and the Nasdaq composite fell 0.1% to 19,281.40.
Stocks had been broadly rising since last week on expectations that Trump’s preference for lower tax rates and other policies may mean faster economic growth, as well as bigger U.S. government debt and higher inflation. Some areas of the market rocketed on particularly high-grade fuel, such as smaller U.S. stocks seen as benefiting the most from Trump’s “America First” ideas.
They gave back some of their big gains Tuesday, and the Russell 2000 index of smaller companies fell a market-leading 1.8%. Even Tesla, which is run by Trump’s ally Elon Musk, sank. It dropped 6.1% for its first loss since before Election Day.
A jump in Treasury yields also added pressure on the stock market, as trading of U.S. government bonds resumed following Monday’s Veterans Day holiday. The yield on the 10-year Treasury jumped to 4.42% on Tuesday from 4.31% late Friday, which is a notable move for the bond market.
Treasury yields have been climbing sharply since September, in large part because the U.S. economy has remained much more resilient than feared. The hope is that it can continue to stay solid as the Federal Reserve continues to cut interest rates in order to keep the job market humming, now that it’s helped get inflation nearly down to its 2% target.
