World shares struggled on Thursday as investors awaited Donald Trump’s return to the White House and a more hawkish Federal Reserve outlook, leading to a weaker dollar and decreased investor confidence.
Global shares had closed out 2024 with a strong gain, but ticked 0.1% lower in December ahead of the Wall Street open. European stocks eased at their first trading session of 2025, while US stock futures pointed higher despite underperformance in France’s CAC 40 index and notable losses in China’s CSI 300 Index.
China’s New Year start was its weakest since 2016, with factory data disappointing investors who were expecting more policy support. The country’s blue-chip CSI 300 Index fell 2.9%, while the Shanghai Composite Index tumbled 2.7% and Hong Kong’s benchmark Hang Seng declined 2.2%.
Economists warn that a debt-deflation trap could be looming, with investors closely monitoring China’s recovery amid Trump’s talk of tariffs in excess of 60% on imports of Chinese goods. The Federal Reserve’s hawkish outlook also adds to the uncertainty.
Key economic and inflation indicators will dominate market focus this year, with President Xi Jinping announcing more proactive policies to promote growth in 2025. However, investors remain cautious ahead of Trump’s return, leaving global shares struggling for traction.
Source: https://finance.yahoo.com/news/asia-shares-off-bumpy-start-025731223.html