European markets opened higher on Wednesday, with Germany's DAX edging up 0.2% to 19,067.59, the CAC 40 in Paris adding 0.2% to 7,242.33, and the U.K.'s FTSE 100 rising 0.1% to 8,035.44. Meanwhile, 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.
Japan’s benchmark Nikkei 225 slipped 1.7% to 38,721.66 due to wholesale inflation reaching its highest level since July of last year. The corporate goods price index rose 3.4% in October year-over-year, 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, with Samsung Electronics shares falling by 4.5% to their lowest level in over four years.
Hong Kong’s Hang Seng dropped for a fourth day, declining 0.1% to 19,823.45, while 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, 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 rising on expectations of faster economic growth under Trump's policies, but gave back some gains on Tuesday.
The rise in Treasury yields added pressure on the stock market, with the 10-year Treasury yield jumping to 4.42% on Tuesday. Treasury yields have been climbing sharply since September, partly due to the U.S. economy's resilience. Trump's policies could further impact inflation and government debt, affecting interest rates.
In the crypto market, bitcoin soared to a record high before pulling back. Trump's support for cryptocurrencies has influenced market trends. Bitcoin reached $89,995 before dipping back toward $89,500, starting the year below $43,000.
In energy trading, benchmark U.S. crude gained 3 cents to $68.15 a barrel, while Brent crude fell 6 cents to $71.83 a barrel. In currency trading, the U.S. dollar edged up to 155.09 Japanese yen from 154.51 yen, and the euro cost $1.0607, down from $1.0625.
