European shares climb and Asian shares retreat after US stocks pause
their record-breaking rally
[June 04, 2026] By
ELAINE KURTENBACH
World shares were mixed Thursday after declines on Wall Street that
snapped a nine-day winning streak for the S&P 500.
Oil prices fell back after Israel and Lebanon said they had agreed to
renew their fragile ceasefire and create a number of “pilot” security
zones inside Lebanon from which Hezbollah militants would be banned.
Crude had surged Wednesday when both the United States and Iran said
they launched retaliations for earlier attacks or attempted ones.
Early Thursday in Asia, Brent crude was trading 65 cents lower at $97.16
per barrel, while benchmark U.S. crude oil shed 58 cents to $95.44 per
barrel.
In early European trading, Germany's DAX gained 0.6% to 24,933.09 and
the CAC 40 in Paris also climbed 0.6%, to 8,201.85. Britain's FTSE 100
edged 0.1% higher to 10,344.32.
The future for the S&P 500 shed 0.2% while that for the Dow Jones
Industrial Average added 0.2%.
Japan's Nikkei 225 shed 1.4% to 67,470.69 on selling of technology
stocks. Energy and technology giant SoftBank Group slumped 11.2%, while
Shin-Etsu Chemical dropped 3.8%.
Hong Kong's Hang Seng lost 1.4% to 25,274.98, and the Shanghai Composite
index fell 0.8% to 4,057.78.
In South Korea, the Kospi sank 1.8% to 8,639.41, while Australia's S&P/ASX
200 declined 1.1% to 8,686.10.
On Wednesday, the S&P 500 fell 0.7% from its all-time high for its first
drop in 10 days. The Dow industrials dropped 1.2% and the Nasdaq
composite sank 0.9%.
Stocks felt pressure from higher yields in the bond market, which
climbed with the price of oil. The yield on the 10-year Treasury was
steady at 4.49%, up from 4.46% late Tuesday and from just 3.97% before
the war began.
High yields worldwide are threatening to slow economies and undercut
prices for stocks and all kinds of other investments. They have already
forced the average long-term U.S. mortgage rate to its most expensive
level in nine months, and they could curtail companies’ borrowing to
build the artificial-intelligence data centers that have supported the
U.S. economy’s growth recently.
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A dealer watches computer monitors at a dealing room of Hana Bank in
Seoul, South Korea, Thursday, June 4, 2026. (AP Photo/Lee Jin-man)
 More expensive loans can hurt
smaller companies in particular because many need to borrow to grow.
The Russell 2000 index of the smallest U.S. stocks fell 1.3%, more
than the rest of the market.
Still, stocks remain near their records, even with all the pressure
on the global economy created by higher inflation.
Oil prices remain below their peaks from earlier in the war with
Iran, and hope seems to be remaining on Wall Street that the United
States and Iran will ultimately agree to reopen the Strait of Hormuz
to oil tankers. That would improve the global flow of crude and
hopefully lower its price.
Lawmakers in the U.S. House for the first time Wednesday approved a
war powers resolution that would halt the U.S. military action
against Iran, defying President Donald Trump as a handful of
Republicans joined with Democrats to try to end the three-month-long
conflict that has reordered politics at home and abroad and roiled
world markets.
Reports on the U.S. economy were mixed. One from the Institute for
Supply Management said growth accelerated more last month for U.S.
construction, agricultural and other services businesses than
economists expected.
The survey also showed businesses are feeling the pinch of higher
prices caused by tariffs and more expensive oil.
Thursday will bring U.S. employment data.
In other dealings early Thursday, the U.S. dollar fell to 159.89
Japanese yen from 160.08 yen late Wednesday. The euro rose to
$1.1603 from $1.1600.
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