Positive sentiment prevailed throughout the trading session, pushing the index to an intra-day high of 172,582.95.

At close, the benchmark index settled at 172,400.73, an increase of 1,570.51 points or 0.92%.

On Wednesday, PSX settled on a subdued note as cautious investor sentiment during the roll-over week led to selective selling in heavyweight stocks, dragging key indices into negative territory despite an improvement in overall trading activity. The KSE-100 Index declined by 243.51 points, or 0.14%, to settle at 170,830.22 points.

The market was closed on Thursday, 25 December, on account of a public holiday.

KSE-100 Index increased 0.58% on week-on-week basis.

“This gain can be accredited to successful privatisation of Pakistan International Airlines… Apart from it cut in policy rate by SBP last week by 50 bps to 10.5%, continued to garner investor interest in the market,” brokerage house Topline Securities said.

“In other major events in T-Bill auction held during the week government raised Rs883 billion against a target of Rs600 billion and maturity of Rs471 billion, where yields declined in the range of 36bps to 72bps.”

Internationally, Asian stocks rose to their highest in six weeks on Friday, and a blistering rally in precious metals showed no signs of tempering as investors sought to close out the year on a high, while a softer yen kept intervention risk in the fray.

Markets in Australia, Hong Kong and most of Europe are closed on Friday, with liquidity expected to be thin. Still, investors are attempting a year-end rally, with risk appetite perking up this week.

Japan’s Topix climbed to a record high and was last up 0.5%. South Korea’s benchmark index rose 0.6%, taking its annual gain to 72% and making it the best-performing major stock market in the world this year.

China’s blue-chip stock index was 0.27% higher, on pace to clock an 18% gain for the year, its strongest annual surge since 2020.

That pushed MSCI’s broadest index of Asia-Pacific shares to its highest level since November 14. The index was last up 0.4% and has gained 25% so far.

Meanwhile, the Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market on Friday. At close, the local currency settled at 280.17, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 797.99 million from 811.56 million recorded in the previous close. The value of shares rose to Rs38.06 billion from Rs29.79 billion in the previous session.

WorldCall Telecom was the volume leader with 79.32 million shares, followed by B.O.Punjab with 78.05 million shares, and K-Electric Ltd with 33.06 million shares.

Shares of 482 companies were traded on Friday, of which 221 registered an increase, 229 recorded a fall, and 32 remained unchanged.

The market kicked off trading on a positive note, pushing the KSE-100 Index to an intra-day high of 166,729.97. Stocks swung both ways throughout the trading session, with profit-taking observed in the final hours of dragging the index down to an intra-day low of 164,306.76.

At close, the KSE-100 settled at 164,530.80, a decrease of 735.94 points or 0.45%.

“The market has entered a feeding frenzy phase where central banks, funds, and retail investors are all in, and naturally, few are willing to sell winning positions, which is keeping upside momentum intact,” Waqas Ghani, Head of Research at JS Global Capital Ltd, wrote in a note.

“Gold has already surged 50% in 2025 and is now eyeing $4,500. Silver is also pushing toward its 2011 highs and could continue surging if the breakout continues, as long-term projections suggest. That said, early signs of profit-taking are emerging in intraday action, hinting at rising volatility ahead.

“Short-term pullbacks are likely after such steep moves, but the broader uptrend remains firmly in place,” he added.

Major draggers included HBL, UBL, NBP, SYS, and BAFL, which collectively wiped out 639 points from the index. Conversely, selective buying in MCB, LUCK, and ENGRO contributed 317 points, providing some cushion to the benchmark, brokerage house Topline Securities said in its post-market report.

In a major development, Pakistan and the IMF made significant progress toward a SLA following review talks under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), the Washington-based lender said after concluding its mission to the country.

“The IMF mission and the Pakistani authorities made significant progress toward reaching an SLA on the second review under the 37-month Extended Arrangement under the EFF and on the first review of the 28-month arrangement under the RSF.

“Program implementation remains strong, and broadly aligned with the authorities’ commitments,” the IMF said in a statement.

Moreover, Israel and Hamas agreed on Wednesday to the first phase of US President Donald Trump’s plan for Gaza, a ceasefire and hostage deal that could open the way to ending a bloody two-year-old war that has upended the Middle East.

On Wednesday, the PSX witnessed a volatile and bearish session as early optimism faded amid aggressive institutional selling. The KSE-100 closed at 165,266.75 points, down 907 points or 0.55%.

Internationally, Asian stock markets scored fresh highs on Thursday as investors doubled down on all things AI-related, while gold held atop $4,000 and the dollar retained its recent hefty gains.

Oil prices dipped as geopolitical tensions eased a little on news that Israel and Hamas had agreed to the first phase of a ceasefire plan to end the two-year conflict.

US President Donald Trump said he might travel to Egypt this weekend to discuss further steps in the deal.

In equity markets, a resumption of the bull run in AI-related tech saw the S&P 500 and Nasdaq reach record highs as funds were again rewarded for buying the dips.

A jump in tech pushed Japan’s Nikkei up 1.5% and back near all-time peaks. Data showed offshore funds bought a net 2.5 trillion yen ($16.40 billion) worth of Japanese shares in the week through October 4.

Stocks in Taiwan climbed 1.2% to a fresh record, while MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.3%.

Meanwhile, the Pakistani rupee posted marginal gain against the US dollar, gaining Re0.01 in the inter-bank market on Thursday. At close, the currency settled at 281.20, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 1,274 million from 1,570 million recorded in the previous close. The value of shares decreased to Rs50.53 billion from Rs61.13 billion in the previous session.

P.T.C.L. was the volume leader with 114.32 million shares, followed by B.O.Punjab with 88.05 million shares, and K-Electric Ltd with 87.48 million shares.

Shares of 481 companies were traded on Thursday, of which 184 registered an increase, 264 recorded a fall, and 33 remained unchanged.

Buying was observed throughout the trading session, pushing the benchmark index to an intra-day high of 119,639.47.

At close, the KSE-100 Index settled at 118,971.40, an increase of 638.50 points or 0.54%.

“The benchmark index closed on a positive note, as investors began positioning themselves, reflecting cautious optimism ahead of further clarity on fiscal measures,” said Ismail Iqbal Securities.

Across the board buying was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks including HUBCO, MARI, OGDC, PPL, SNGPL, SSGC, MCB, MEBL and NBP traded in the green.

On Tuesday, the PSX witnessed a slight recovery amid speculations in the pre-budget session and hopes for a real estate package in the federal budget led to cement stocks.

The benchmark KSE-100 index gained 112 points or 0.09 percent, settling at 118,333 points. The stock market was closed on Wednesday on account of the Yaum-e-Takbeer holiday.

Globally, Asian shares and Wall Street futures jumped in Asia on Thursday after a US federal court blocked President Donald Trump’s “Liberation Day” tariffs from going into effect, sending the dollar up on safe haven currencies.

The little-known Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed, but in the meantime, it offered some hope that Trump might back away from the highest tariff levels he had threatened.

Investors reacted by embracing equities and Japan’s Nikkei quickly rose 1.7%, while South Korean shares gained 1.2% to a nine-month top.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3%, while Chinese blue chips firmed 0.5%.

The ripples were felt worldwide as EUROSTOXX 50 futures rose 1.1%, while FTSE futures gained 0.7% and DAX futures 0.9%.

S&P 500 futures climbed 1.6%, while Nasdaq futures rose 1.9%. The latter had already been lifted by relief over earnings from Nvidia, which beat sales estimates.

The chipmaker and AI darling also projected strong revenues for the current quarter, sending its shares up 4.4% after hours.

Meanwhile, the Pakistani rupee registered gains against the US dollar, appreciating 0.04% in the inter-bank market on Thursday. At close, the local currency settled at 282.07, a gain of Re0.10 against the greenback.

Volume on the all-share index increased to 741.65 million from 690.39 million recorded in the previous close.

The value of shares rose to Rs23.91 billion from Rs23.83 billion in the previous session.

WorldCall Telecom was the volume leader with 137.52 million shares, followed by K-Electric Ltd with 119.63 million shares, and P.T.C.L with 65.68 million shares.

Shares of 466 companies were traded on Thursday, of which 268 registered an increase, 159 recorded a fall, while 39 remained unchanged.

At close, the benchmark index settled at 118,332.90, marginal increase of 111.78 points or 0.09%.

“The stock market saw a range-bound session today, with the index moving within a confined band due to rollover pressures and uncertainty surrounding the upcoming budget,” brokerage house Topline Securities said in its post-market report.

Positive momentum was driven by notable contributions from MEBL, SYS, PKGP, PPL, and DGKC, which together added 223 points to the index. Topline said.

Another brokerage house Ismail Iqbal Securities said a wait-and-see approach dominated sentiment, with participants largely staying on the sidelines in the absence of clear market moving triggers.

On Monday, the KSE-100 index fell sharply as investors reacted to the postponed budget and uncertainty over the IMF’s approval of the circular debt plan. The benchmark index dropped by 881.55 points, or 0.74%, settling at 118,221 points.

Internationally, the Asian shares eased on Tuesday, though US futures rose after President Donald Trump delayed his threatened 50% duties on European Union shipments, while the US dollar was headed for a fifth straight monthly loss.

In Japan, yields on super-long government bonds fell early in the session, retreating from their all-time highs in the wake of last week’s heavy selloff in the bonds.

Markets in the US were closed on Monday for a holiday, making for thin overnight trading conditions and leaving investors latching on to lingering optimism from Trump’s U-turn on his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline.

Nasdaq futures were up 1.26% in Asia while S&P 500 futures similarly rose 1.11%. FTSE futures advanced 0.94%. UK markets were also closed on Monday.

Results from Nvidia are due on Wednesday, where the AI darling is expected to report a 65.9% jump in first-quarter revenue.

Elsewhere, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.17%, while Japan’s Nikkei similarly fell 0.15%.

China’s CSI300 blue-chip index edged 0.06% lower while the Shanghai Composite Index was little changed. Hong Kong’s Hang Seng Index dipped 0.1%.

Focus for investors this week will also be on speeches from a slew of Federal Reserve policymakers and Friday’s US core PCE price index, for clues on the outlook for US rates.

Meanwhile, the Pakistani rupee declined further against the US dollar, depreciating 0.04% in the inter-bank market on Tuesday. At close, the local currency settled at 282.17, a loss of Re0.11 against the greenback.

Volume on the all-share index increased to 690.39 million from 635.53 million recorded in the previous close.

The value of shares rose to Rs23.83 billion from Rs18.58 billion in the previous session.

K-Electric Ltd was the volume leader with 267.62 million shares, followed by WorldCall Telecom with 31.56 million shares, and P.T.C.L with 20.01 million shares.

Shares of 459 companies were traded on Tuesday, of which 211 registered an increase, 210 recorded a fall, while 38 remained unchanged.

Gaining positivity in line with the State Bank of Pakistan’s (SBP) decision to cut the policy rate by 100 basis points to 11%, the KSE-100 opened the Tuesday’s session with a buying spree, hitting an intra-day high of 115,093.11.

However, selling in the second half erased all the gains and pushed the index into the negative territory.

At close, the benchmark index settled at 113,568.51, down by 533.73 points or 0.47%.

“The reversal in market trajectory was primarily driven by renewed geopolitical tensions between Pakistan and India, which unsettled investors and overshadowed the central bank’s dovish stance,” brokerage house Topline Securities said in its post-market report.

Key heavyweight stocks that provided upward support included PPL, OGDC, PSO, UBL, and SYS, which cumulatively contributed +275 points to the index. On the other hand, notable laggards such as LUCK, HMB, HUBC, EFERT, and BAHL collectively shaved -427 points, weighing heavily on overall performance, it added.

On Monday, the PSX benchmark KSE-100 Index closed flat at 114,102.24, after recovering from the over 1,000-point loss it had incurred during trading.

Meanwhile, global stocks held tight ranges on Tuesday, and the dollar clawed back some of its recent losses against Asian counterparts as investors revived concerns about US tariffs and their impact on economic growth.

Those worries, coupled with pledges from key oil producers to boost supply, also kept crude prices languishing near four-year lows.

The focus in Asia has shifted to currencies following the Taiwan dollar’s surge in recent sessions, which has stoked speculation that a revaluation of regional foreign exchange was on the cards to win U.S. trade concessions.

Its rally suggested a big unwinding is underway and shines a light on one economy among many where years of big trade surpluses have built up large long dollar positions at exporters and insurers that are now under question and on edge.

The heat turned to Hong Kong on Tuesday, where the de facto central bank bought $7.8 billion to stop the local currency from strengthening and breaking its peg to the greenback.

In stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.2% lower, with Japan closed for a holiday. Taiwan stocks slipped 0.3%.

Chinese markets returned from a holiday with the blue-chip index opening slightly higher. Hong Kong’s Hang Seng was down 0.2%.

Investor attention has been on the possibility of easing trade tensions between the US and China after Beijing last week said it was evaluating an offer from Washington to hold talks over tariffs.

But with few details, uncertainty has reigned, with investors left trying to make sense of headlines coming out of the White House.

Meanwhile, the Pakistani rupee posted a marginal decline against the US dollar, depreciating 0.05% in the inter-bank market on Tuesday. At close, the local currency settled at 281.37, a loss of Re0.15 against the greenback.

Volume on the all-share index increased to 420.55 million from 399.54 million recorded in the previous close.

The value of shares rose to Rs23.70 billion from Rs19.85 billion in the previous session.

Sui South Gas was the volume leader with 54.32 million shares, followed by K-Electric Ltd with 42.26 million shares, and Dewan Cement with 26.19 million shares.

Shares of 453 companies were traded on Tuesday, of which 188 registered an increase, 218 recorded a fall, while 47 remained unchanged.

The KSE-100 started the session positive, hitting an intra-day high of 114,444.01.

However, the latter hours witnessed selling pressure that pushed the index to an intra-day low of 112,813.87.

At close, the benchmark index settled at 112,800.93, down by 938.23 points or 0.82%.

“Market opened on a positive note led by LUCK PA, as the company through a notice to exchange announced a stock split where shareholders will get 5 share for every 1 share held. However, profit taking was observed in the second half of trading session, as investors came in to book their profit the weekend,” brokerage house Topline Securities said in its post-market report.

In a key development, it was learnt that an International Monetary Fund (IMF) mission will arrive in Islamabad next week to discuss around $1 billion in climate financing for Pakistan.

Khurram Schehzad, adviser to the country’s finance minister, told Reuters on Thursday that the mission would visit from February 24 to 28 for a “review and discussion” of climate resilience funding.

On Thursday, the KSE-100 gained nearly 400 points to settle at 113,739.16.

The index closed the week on a flat note (up by meager 0.63%), where investors kept a close eye on December quarter result announcements, Topline said.

Internationally, Asian shares rose on Friday, reversing Wall Street’s negative lead as the U.S. exceptionalism narrative continued to lose its shine, while once unloved Chinese stocks found themselves more buyers thanks to optimism over artificial intelligence (AI).

Gold hovered near a record high and was set to extend its gains for an eighth consecutive week, helped by safe-haven flows due to concerns over Donald Trump’s tariff threats and amid contentious talks as the US President pushes for a quick deal to end the Russia-Ukraine war.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8% in the early Asian session, boosted by a jump in Hong Kong-listed stocks.

Hong Kong’s Hang Seng Index advanced 1.8% shortly after the open, while tech shares surged 2.5%.

Similarly, China’s CSI300 blue-chip index gained 0.2%, with the CSI big data index rising 2%.

Chinese stocks have been on a tear in recent days, driven by DeepSeek’s AI breakthrough that reignited investor interest in China’s technology capabilities.

While the Hang Seng Tech Index has gained 26% for the year thus far, the S&P 500 is up just 4% over the same period.

Meanwhile, the Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Friday. At close, the rupee settled at 279.57, a loss of Re0.11 against the greenback.

Volume on the all-share index decreased to 455.39 million from 787.44 million recorded in the previous close.

The value of shares declined to Rs21.52 billion from Rs33.10 billion in the previous session.

Pak Int.Bulk was the volume leader with 35.41 million shares, followed by K Electric Ltd with 24.74 million shares, and GhaniGlobalGlass with 19.83 million shares.

Shares of 451 companies were traded on Friday, of which 173 registered an increase, 219 recorded a fall, while 59 remained unchanged.

The KSE-100 started Friday’s session with a strong buying spree that pushed the index to an intra-day high of 115,779.06, a gain of more than 1,700 points as compared to the previous day close.

However, some late-session selling cut the earlier gains, pushing the benchmark index close the day at 114,880.49, a gain of 842.70 points or 0.74%.

“Market may draw optimism from the government being able to pass legislation on electronic crimes in parliament. However, talks between PTI and government have seemingly broken down,” said Intermarket Securities in a note on Friday.

The brokerage house added that market participants are eyeing a 100 basis points cut in the upcoming Monetary Policy Committee (MPC) meeting scheduled for Monday, January 27, 2025.

On Thursday, positivity returned to the PSX with the KSE-100 closing with a gain of nearly 600 points at 114,037.79.

Global shares rose on Friday buoyed by the prospect of lower US interest rates and a US-China trade deal following comments from President Donald Trump, while the yen steadied ahead of a widely expected hike from the Bank of Japan.

In a sign of policies to come, Trump told business leaders at the World Economic Forum in Davos, Switzerland, on Thursday that he wants to lower global oil prices, interest rates and taxes, and warned of tariffs on exports to the United States.

The comments moved markets, with the S&P 500 hitting a record high and the dollar on the defensive as investors remain cautious about Trump’s next moves on trade and tariffs.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6% boosted by Chinese stocks after Trump said his recent conversation with President Xi Jinping was friendly, adding he thought he could reach a trade deal with China.

Those comments sent China’s CSI300 blue-chip index 0.6% and Hong Kong’s Hang Seng index 1.7% higher. The Australian and New Zealand dollars, as well as the yuan, rose on signs of a softer stance on tariffs from Trump.

With no new details on Trump’s tariff plans, the uncertainty has weighed on bond prices. Treasury yields have been on the rise as bond investors brace for eventual tariffs that may stoke inflation.

Meanwhile, the Pakistani rupee remained largely stable against the US dollar, depreciating 0.01% in the inter-bank market on Friday. At close, the currency settled at 278.75 for a loss of Re0.03 against the greenback.

Volume on the all-share index decreased to 632.04 million from 675.54 million on Thursday.

The value of shares increased to Rs37.80 billion from Rs30.47 billion in the previous session.

Cnergyico PK was the volume leader with 61.45 million shares, followed by Sui South Gas with 57.68 million shares, and WorldCall Telecom with 33.77 million shares.

Shares of 445 companies were traded on Friday, of which 226 registered an increase, 167 recorded a fall, while 52 remained unchanged.

The market opened on a positive note, with the benchmark index hitting an intra-day high of 114,884.63. However, selling pressure soon returned, dragging the KSE-100 to an intra-day low of 113,630.45.

At close, the benchmark index settled at 113,836.74, a decrease of 658.96 points or 0.58%.

Across-the-board selling was observed in key sectors including automobile assemblers, commercial banks, fertiliser, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks including PRL, PSO, SSGC, SNGPL, OGDC, PPL, ENGRO, MEBL and UBL ended in the red.

Market experts noted that investors are keeping a close eye on the local political situation, as negotiations between the Pakistan Muslim League-Nawaz-led (PML-N) team and Pakistan Tehreek-e-Insaaf (PTI) continue.

Whereas, “some are concerned that the buildup of SBP’s forex reserves has slowed,” said Intermarket Securities in a note.

On Wednesday, PSX witnessed a mixed trend and remained oscillating in positive and negative zones before closing in the red, after three consecutive positive sessions, as investors opted to offload their holdings on available margins.

The KSE-100 Index declined by 308.46 points or 0.27% and closed at 114,495.71 points.

Globally, Asian shares tracked Wall Street higher on Thursday and the dollar was soft as easing core U.S. inflation kept potential rate cuts by the Federal Reserve on the table, while the yen rose to a one-month high on rate hike bets.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.4%.

China’s blue-chip stocks rose 0.67% while Hong Kong’s Hang Seng index surged 1.5%.

Investor focus has centred on President-elect Donald Trump’s policies as he returns to the White House on Monday, with recent media reports of a gradual implementation of tariffs by the new administration easing some worries.

Meanwhile, the Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Thursday. At close, the currency settled at 278.86 after a loss of Re0.09 against the greenback.

Volume on the all-share index decreased to 469.44 million from 659.43 million on Wednesday.

The value of shares declined to Rs24.98 billion from Rs39.64 billion in the previous session.

WorldCall Telecom was the volume leader with 103.7 million shares, followed by Cnergyico PK with 37.11 million shares, and Dewan Motors with 19.33 million shares.

Shares of 464 companies were traded on Thursday, of which 137 registered an increase, 268 recorded a fall, while 59 remained unchanged.

Throughout the trading session, the KSE-100 fluctuated between highs and lows. However, strong selling pressure was observed during the final hours of trading which dragging the index to an intra-day low of 112,594.66.

At close, the KSE-100 Index settled at 112,638.26, a decrease of 1,510.19 points or 1.32%.

Across-the-board selling was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation.

Index-heavy stocks including HUBCO, NRL, MARI, PSO, SSGC, SNGP, MCB, MEBL, NBP and UBL traded in the red.

“We think fresh positive triggers for the market are few in the near term, while uncertainties around politics are rising,” said Intermarket Securities in a note.

“Pakistan market will keep a watchful eye on the incoming US administration; some members of which have voiced concerns on Imran Khan remaining in jail,” it added.

On Wednesday, the PSX’s benchmark KSE-100 Index closed lower by more than 1,900 points after profit-taking in the final hours to settle at 114,148.46.

Internationally, the global bond rout that has pressured equities and boosted the safe-haven US dollar showed signs of slowing on Thursday, even as Japanese yields edged to new multi-year highs.

Selling in stocks continued though, with most Asian share indexes ticking down in early trading. The dollar was stable, while oil prices edged lower.

The greenback and US Treasury yields have gained momentum from recent signs of resilience in the economy and stickiness in inflation, which have seen market bets lowered on the amount of Federal Reserve easing this year.

Minutes of the Fed’s December policy meeting, released on Wednesday, showed officials’ concern that President-elect Donald Trump’s proposed tariffs and immigration policies may prolong the fight against rising prices.

Selling in Treasuries on Wednesday accelerated after a CNN report that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal levies on allies and adversaries.

Markets are only fully pricing in one 25-bps rate cut in 2025, and see around a 60% chance of a second.

All that has combined to make global stock market sentiment fragile, and Asian equities were mostly in the red early on Thursday.

Japan’s Nikkei fell 0.7%, Australia’s stock benchmark slipped 0.6%, and Taiwanese shares lost 0.2%.

Meanwhile, the Pakistani rupee recorded a marginal improvement against the US dollar, appreciating 0.04% in the inter-bank market on Thursday. At close, the currency settled at 278.61 for a gain of Re0.11 against the greenback.

Volume on the all-share index decreased to 695.14 million from 1,099.98 million on Wednesday.

The value of shares declined to Rs24.29 billion from Rs32.47 billion in the previous session.

WorldCall Telecom was the volume leader with 195.30 million shares, followed by K-Electric Ltd with 48.68 million shares, and Cnergyico PK with 35.46 million shares.

Shares of 454 companies were traded on Thursday, of which 89 registered an increase, 321 recorded a fall, while 44 remained unchanged.

The market kicked off trading on a positive note, with the KSE-100 hitting an intra-day high of 116,843.41.

However, selling pressure soon emerged, dragging the index to an intra-day low of 113,677.50.

Late buying trimmed losses and the benchmark index finally settled at 116,052.68, a decrease of 202.44 points or 0.17%.

“Despite the initial drop, the market rebounded. A statement from the prime minister, indicating that the government is considering reducing electricity rates, played a role in the recovery of share prices,” brokerage house Topline Securities said in its post-market report.

The decline in the index was primarily driven by EFERT, FFC, HBL, ATRL, and PSO, which together contributed to a loss of 433 points. On the other hand, ENGROH, OGDC, and TRG helped offset the losses, adding 436 points to the index, it added.

Experts attributed the early decline to the deteriorating law and order situation in Balochistan and the considerable increase in PSO’s receivables, which weighed on overall market sentiment, particularly in the oil and gas sector.

On Monday, PSX witnessed a volatile session as its benchmark KSE-100 Index swayed both ways on bouts of buying and selling before closing the day lower by 1,332 points at 116,255.13.

Internationally, Asia shares rose on Tuesday, tracking Wall Street’s positive lead and as some investors hoped incoming US President-elect Donald Trump could adopt a less aggressive tariff stance than promised when he takes office.

The Washington Post reported on Monday that Trump aides were exploring tariff plans that would be applied to every country but only cover certain sectors deemed critical to national or economic security. This would have represented a marked shift from Trump’s promises during the 2024 presidential campaign.

While the news initially sent stocks rallying and the dollar falling, Trump’s subsequent denial on his Truth Social platform reversed some of the US currency’s declines.

MSCI’s broadest index of Asia-Pacific shares outside Japan, was up 0.16% in the early Asian session, while Japan’s Nikkei, jumped 2%, boosted by a rally in technology stocks.

Minutes of the Fed’s last meeting due on Wednesday will offer colour on their dot plot predictions, while there will be plenty of live comments with several top policymakers speaking.

The prospect of a less aggressive Fed easing cycle this year has in turn kept U.S. Treasury yields supported, with the benchmark 10-year yield last at 4.6219%, after rising to its highest since May in the previous session.

Meanwhile, the Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Tuesday. At close, the currency settled at 278.67 for a loss of Re0.05 against the greenback.

Volume on the all-share index decreased to 792.77 million from 819.80 million on Monday.

However, the value of shares increased to Rs39.69 billion from Rs38.33 billion in the previous session.

WorldCall Telecom was the volume leader with 80.58 million shares, followed by Cnergyico PK with 76.60 million shares, and K-Electric Ltd with 45.71 million shares.

Shares of 453 companies were traded on Tuesday, of which 133 registered an increase, 275 recorded a fall, while 45 remained unchanged.

Bullish momentum persisted throughout the trading session, with the benchmark index hitting an intra-day high of 117,341.03.

At close, the benchmark index settled at 117,008.08, an increase of 1,881.18 points or 1.63%.

“The market maintained an upward trajectory, supported by strong buying activity from local institutions,” brokerage house Topline Securities said.

Buying interest was observed in key sectors, including automobiles, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation, and pharmaceuticals.

Index-heavy stocks including HUBCO, PSO, MARI, OGDC, ENGRO, MCB and MEBL traded in the green.

Investor interest has been fuelled by expectations of a further cut in policy rate in the upcoming Monetary Policy Committee (MPC), which is anticipated later this month.

In a key development, Pakistan’s headline inflation clocked in at 4.1% on a year-on-year basis in December 2024, a reading that was also below that of November 2024 when it stood at 4.9%, showed Pakistan Bureau of Statistics (PBS) data on Wednesday.

On a month-on-month basis, CPI increased by 0.1% in December 2024 as compared to 0.5% in the previous month and an increase of 0.8% in December 2023.

Prime Minister Shehbaz Sharif on Tuesday rolled out ‘Uraan Pakistan’, a five-year national economic plan aimed at steering the country toward sustainable growth.

On Tuesday, the KSE-100 closed the last trading day of 2024 nearly flat, settling at 115,126.90, down by 132.09 points or 0.11.

The PSX experienced a remarkable comeback in the year 2024, following years of lacklustre performance. Stocks surged by 84.34%, making it the second-best-performing market globally, analysts said.

Over the last 18 months, the PSX has been the top-performing market in the world with a 178% gain. This represents the strongest performance in Pakistan’s 77-year history over such a short period.

“Despite this record-breaking rally, Pakistan stocks are still trading at an average forward P/E ratio of 6.3x, signalling the significant potential for further growth, “ said Muhammad Sohial, leading analyst and CEO of Topline Securities.

Internationally, India’s benchmark indexes were muted on Wednesday, the first session of 2025, with analysts expecting markets to drift sideways until the quarterly earnings season starts next week.

The Nifty 50 dipped by 0.11% at 23,617.75 points as of 9:35am IST, while the BSE Sensex was off 0.09% at 78,057.81.

Other Asian markets were also muted, with the MSCI Asia ex-Japan index down 0.1% as elevated U.S. Treasury yields continue to weigh on emerging markets.

Volume on the all-share index decreased to 956.27 million from 1,236.87 million on Tuesday.

However, the value of shares rose to Rs46.44 billion from Rs44.22 billion in the previous session.

Cnergyico PK was the volume leader with 71.00 million shares, followed by Pak Int.Bulk with 62.83 million shares, and B.O.Punjab with 45.41 million shares.

Shares of 462 companies were traded on Wednesday, of which 258 registered an increase, 161 recorded a fall, while 43 remained unchanged.

Positive momentum persisted throughout the trading session, with the benchmark index hitting an intra-day high of 115,422.34.

At close, the KSE-100 settled at 115,258.99, an increase of 3,907.82 points or 3.51%.

Across-the-board buying was witnessed in key sectors including automobile assemblers, cement, chemical, commercial banks, fertilizer, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks including HUBCO, OGDC, MARI, PPL, POL, PSO, SNGPL, HBL, MEBL, NBP and MCB traded in the green.

During the outgoing year, PSX has emerged as the top performer among Pakistan’s asset classes in 2024, with the benchmark KSE-100 Index up 78%, making it the second-best performing market globally after Argentina, said Topline Securities in a report.

“Over the past 18 months, the PSX delivered a 177% USD return (169% in PKR), driven by macroeconomic stabilization and improvements in external accounts,” it said.

However, despite the rally, PSX’s market capitalisation is still $50 billion, half of its 2017 peak of $100 billion.

“This decline is due to PKR devaluation, large dividend payouts, and fewer listings,” read the report.

During the previous week, PSX witnessed a bullish trend and closed on a positive note with healthy gains on the back of fresh buying on available attractive low levels. The index surged by 1,838.03 points on a week-on-week basis and closed at 111,351.18 points.

Globally, Asian shares edged lower on Monday as high Treasury yields challenged lofty Wall Street equity valuations while underpinning the US dollar near multi-month peaks.

Volumes were light with the New Year holiday looming and a rather bare data diary this week. China has the PMI factory surveys out on Tuesday, while the US ISM survey for December is due on Friday.

MSCI’s broadest index of Asia-Pacific shares outside Japan, dipped 0.2% but is still 16% higher for the year. Japan’s Nikkei eased 0.2% but is sitting on gains of 20% for 2024.

South Korea’s main index has not been so fortunate, having run into a storm of political uncertainty in recent weeks, and is saddled with losses of more than 9% for the year. It was last off 0.35%.

S&P 500 futures and Nasdaq futures were both off 0.1%. Wall Street suffered a broad-based sell-off on Friday with no obvious trigger, though volumes were just two-thirds of the daily average.

Meanwhile, the Pakistani rupee remained largely stable against the US dollar, depreciating 0.01% in the inter-bank market on Monday. At close, the currency settled at 278.48 for a loss of Re0.10 against the greenback.

Volume on the all-share index increased to 1,059.02 million from 815.92 million on Friday.

However, the value of shares declined to Rs40.89 billion from Rs32.92 billion in the previous session.

Cnergyico PK was the volume leader with 125.61 million shares, followed by WorldCall Telecom with 111.55 million shares, and B.O.Punjab with 84.18 million shares.

Shares of 465 companies were traded on Monday, of which 333 registered an increase, 84 recorded a fall, while 48 remained unchanged.

Bulls made a roaring comeback from the get-go as investors rejoiced over a decline in political turmoil as Pakistan Tehreek-e-Insaf (PTI) ended its three-day protest in Islamabad following a law enforcement crackdown.

During trading, the KSE-100 hit an intra-day high of 99,549.81.

At close on Wednesday, the benchmark index settled at 99,269.25, an increase of 4,695.09 points or 4.96%.

Massive buying was witnessed at the bourse with the index-heavy banking sector leading the rally alongside other sectors including automobile assemblers, oil and gas exploration companies, OMCs and power generation.

Index-heavy stocks including HBL, NBP, MCB, OGDC, SSGC and HUBCO traded in the green territory. The final few minutes also saw buying interest, showing that the trend was here to stay.

The positive sentiment was a complete turnaround from Tuesday’s bloodbath, as the benchmark KSE-100 Index witnessed the biggest single-day decline, plunging by over 3,500 points to settle at 94,574, with investors viewing Islamabad’s situation as worsening after the Pakistan Army was called in to stop the protest from becoming more violent.

However, optimism returned following decisive overnight actions by law enforcement.

The police and Rangers on Tuesday cleared Blue Area as well as D-Chowk after launching a late night crackdown on Pakistan Tehreek-e-Insaf (PTI) protesters headed by Bushra Bibi, the wife of Imran Khan, and Chief Minister Khyber Pakhtunkhwa Ali Amin Gandapur.

“Pakistan stocks recovered at opening after the opposition protest got over last night,” said Mohammed Sohail, CEO of Topline Securities, in a note.

Adding to the positive momentum, the State Bank of Pakistan (SBP) on Tuesday removed the Minimum Profit Rate (MPR) requirement for all conventional banks on deposits from financial institutions, public sector enterprises, and public limited companies.

The central bank also directed Islamic Banking Institutions (IBIs) to pay at least 75% of the weighted average gross yield from their investment pools as profit on PKR savings deposits.

Internationally, Asian stocks were heavy on Wednesday as investors fretted over what countries could be targeted for tariffs under incoming US President Donald Trump, a day after he pledged new levies on Canada, Mexico and China.

Japan’s Nikkei was a stand-out underperformer again on Wednesday, declining 0.9%.

The autos sector was the worst-performing industry group on the Tokyo Stock Exchange, dropping more than 3% as both the threat of tariffs and the drag of a stronger yen weighed on the profit outlook.

Mainland Chinese blue chips sank 0.4%, although Hong Kong’s Hang Seng managed a 0.1% rise.

MSCI’s broadest index of Asia-Pacific shares drooped 0.1%.

Meanwhile, the Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Wednesday. At close, the currency settled at 277.96, a loss of Re0.12 against the greenback.

Volume on the all-share index decreased to 1,057.10 million from 1,116.32 million on Tuesday.

The value of shares declined to Rs39.55 billion from Rs43.29 billion in the previous session.

B.O.Punjab was the volume leader with 114.97 million shares, followed by Hascol Petrol with 106.29 million shares, and K-Electric Ltd with 91.20 million shares.

Shares of 453 companies were traded on Wednesday, of which 356 registered an increase, 52 recorded a fall, while 45 remained unchanged.

The KSE-100 started the session with a strong buying spree, hitting an intra-day high of 86,451.43. This was its highest level in history.

However, the second half of the session faced selling pressure that erased intra-day gains.

At close, the KSE-100 Index settled flat at 85,669.28, a marginal gain of 5.30 points or 0.01%.

“The session experienced significant volatility, peaking at 86,451 and dipping to 85,444, largely due to profit-taking and the index’s inability to sustain levels above 86,000. The market was primarily supported by local institutions’ buying activity,” brokerage house Topline Securities said in its post-market report.

Key contributors to the index included MCB, LCI, BAHL, HUBC, and HBL, which collectively added 292 points. However, negative movements from FFC, EFERT, and POL deducted 215 points from the index, it added.

Experts have been crediting the ongoing bullish trend to a higher-than-expected decline in the inflation rate, which has raised hopes for a further cut in the policy rate at the upcoming Monetary Policy Committee (MPC) meeting in November 4.

“Greater than expected decline in headline inflation and anticipated rate cuts in the next two MPC meetings (Nov & Dec)” is driving this trend, Saad Imran, analyst at UBL Funds, told Business Recorder.

“A positive real interest rate of more than 10% advocates further rate cuts which can go down by 250-350bps,” he said.

On Tuesday, the PSX’s record-breaking trend continued due to investors’ strong interest and healthy buying, mainly in the E&P and fertilizer sectors. The benchmark index settled at 85,663.98, an increase of 753.68 points or 0.89%.

Globally, Chinese stocks tumbled on Wednesday alongside their Hong Kong peers. Investors booked profits after a blistering rally, and officials failed to inspire confidence in stimulus plans intended to revive the economy.

Benchmark indexes in China declined more than 5% by midday in a sharp reversal from the moves seen the day before, when markets returned from the week-long National Day holiday with a bang and scaled more than two-year highs.

The Shanghai Composite index fell 5.3%, while the blue-chip CSI300 index dropped 5.4%, both poised to snap a 10-day winning streak.

Meanwhile, the Pakistani rupee ended marginally weaker against the US dollar, depreciating 0.02% in the inter-bank market on Wednesday. At close, the currency settled at 277.72, a loss of Re0.05 against the greenback.

Volume on the all-share index increased to 596.05 million from 506.56 million on Tuesday.

However, the value of shares decreased to Rs31.34 billion from Rs33.05 billion in the previous session.

K-Electric Ltd was the volume leader with 55.8 million shares, followed by Hub Power Co.XD with 39.67 million shares, and PTCL with 32.23 million shares.

Shares of 448 companies were traded on Wednesday, of which 208 registered an increase, 172 recorded a fall, while 68 remained unchanged.

The KSE-100 started the session positive, hitting an intra-day high of 81,939.84.

However, selling pressure in the latter hours provided the bears a space to strengthen their grip and push the index into the negative territory.

At close, the benchmark index settled at 80,117.89, down by 1,721.97 points or 2.10%.

“This significant decline was driven mainly by profit-taking as investors seized the opportunity to lock in gains amid market uncertainty,” brokerage house Ismail Iqbal Securities said in its post-market report.

Selling was witnessed in sectors including banks, fertiliser, power, technology, E&P, cement, and textile.

In a key development, BMI, a Fitch Solutions company, had forecasted that Pakistan is “highly likely” to witness a change of government before the next parliamentary election scheduled for 2029.

“Pakistan’s next parliamentary election is scheduled for 2029. However, it is highly likely that the country will see a change of government before this date,” stated BMI in its Pakistan Country Risk Report for the fourth quarter of calendar year 2024.

“No Pakistani prime minister has ever completed a full five-year term in office,” it noted.

The report said political risk in Pakistan will remain highly elevated in 2024 and 2025.

On Thursday, positive momentum persisted at the PSX as the benchmark KSE-100 gained 684 points to close at a fresh record high at 81,839.86.

Globally, Asian shares are set to end the week on a sour note, as uncertainty across major economies added to headwinds for investors even as the global rate easing cycle gets under way.

It has been a turbulent week in markets, with a tech sell-off sparked by deepening Sino-US trade tensions, uncertainty over US President Joe Biden’s fate in the presidential race, disappointing Chinese economic data and a lacklustre third plenum outcome casting a shadow over the global mood.

In the foreign exchange market, Tokyo’s recent bouts of intervention also kept traders on edge.

Meanwhile, the Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.02% against the US dollar in the inter-bank market on Friday. At close, the currency settled at 278.13, a gain of Re0.04 against the greenback.

Volume on the all-share index increased to 479 million from 470.31 million a session ago.

The value of shares rose to Rs27.85 billion from Rs25.35 billion in the previous session.

Waves Home App was the volume leader with 36.87 million shares, followed by Fauji Fert Bin with 30.67 million shares, and Pak Elektron with 24.82 million shares.

Shares of 446 companies were traded on Friday, of which 91 registered an increase, 305 recorded a fall, while 50 remained unchanged.

Frankfurt's benchmark DAX index and the Paris CAC 40 retreated in afternoon trading after reaching new records earlier in the day. London was also down.

Wall Street opened mixed but all three major US markets were down later in the morning.

Asian shares finished lower.

"I feel like we're in a bit of a wait-and-see mode at the moment," OANDA senior market analyst Craig Erlam told AFP.

After a strong company earnings season, markets are weighing the potential "downside risks" of a slew of issues -- from high energy prices to central bank decisions on interest rates to rising Covid-19 cases in the US and Europe, Erlam said.

"It seems there is apprehension and caution in the markets," he said.

The European single currency held firm after tanking on Wednesday to $1.1264 -- the lowest level since July 2020.

Oil prices briefly touched one-month lows Thursday on lower demand concerns but were flat later in the day.

Inflation has surged worldwide, raising concerns that central banks will cut ultra-lower interest rates sooner than expected to prevent economies from over-heating.

But European Central Bank president Christine Lagarde said this week that the ECB did not expect to raise interest rates next year, in contrast to much sooner tightening expected by the Bank of England and the US Federal Reserve.

While eurozone inflation will hit a record high in November, it is expected to decline over the course of next year, a senior ECB policymaker predicted Wednesday.

"Asia finished mostly lower and Europe is sluggish amid the continued grappling with the supply chain issues and inflation pressures," said analysts at Schwab.

Data out Wednesday showed inflation close to a decade-high in Britain and an 18-year peak in Canada.

That came one week after news that US inflation surged to the highest level since 1990.

Investors are fearful that massive financial stimulus -- coupled with resurgent post-lockdown demand and supply-chain snarl-ups -- could send consumer prices rocketing even further.

In the United States, new data showed a very slight decline in new unemployment claims last week, an unsurprising result indicating the US labour market continues to recover from last year's pandemic downturn.

The Philadelphia Federal Reserve Bank reported Thursday that its manufacturing index climbed above expectations last month, though prices also increased as the country deals with a wave of inflation.

Key figures around 1520 GMT

New York - Dow: DOWN 0.7 percent at 35,704.73 points

London - FTSE 100: DOWN 0.6 percent at 7,251.27

Frankfurt - DAX: DOWN 0.3 percent at 16,199.46

Paris - CAC 40: DOWN 0.2 percent at 7,169.16

EURO STOXX 50: DOWN 0.2 percent at 4,391.63

Tokyo - Nikkei 225: DOWN 0.3 percent at 29,598.66 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,319.72 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,520.71 (close)

Euro/dollar: UP at $1.1352 from $1.1319 at 2200 GMT

Pound/dollar: DOWN at $1.3480 from $1.3487

Euro/pound: UP at 84.21 pence from 83.93 pence

Dollar/yen: UP at 114.26 yen from 114.08 yen

Brent North Sea crude: FLAT at $80.31 per barrel

West Texas Intermediate: FLAT at $77.56 per barrel

Positive earnings reports had pushed Wall Street indices to new records in recent weeks, but those effects appeared to have faded.

Instead, traders were left with Labor Department data showing a very slight decline in new unemployment claims last week, an unsurprising result indicating the US labor market continues to recover from last year's pandemic downturn.

"The key takeaway from the report is that the low level of initial claims should help set expectations for another nice pickup in hiring activity" in the November jobs report due in early December, Patrick J. O'Hare of Briefing.com said.

And the Philadelphia Federal Reserve Bank reported that its manufacturing index climbed above expectations last month, though prices also increased as the country deals with a wave of inflation.

US stocks gain after strong October retail sales

About 15 minutes into trading, the benchmark Dow Jones Industrial Average was down 0.1 percent at 35,901.51.

The broad-based S&P 500 gained 0.2 percent to 4,697.48, and the tech-rich Nasdaq Composite Index rose 0.3 percent to 15,966.51.

Markets are awaiting a raft of US economic data next week, including durable goods orders, existing home sales and personal consumption expenditures.

Perhaps more eagerly anticipated is the announcement from President Joe Biden, expected before the Thanksgiving holiday, on whether he will reappoint Federal Reserve Chair Jerome Powell for a second term at the helm of the central bank.

The Dow Jones Industrial Average and tech-heavy Nasdaq both dropped in early trading and by mid-afternoon in Europe London's FTSE 100 remained firmly in the red.

Data released early Wednesday showed UK annual inflation rose to a near decade-high of 4.2 percent in October on higher energy bills.

The news sent the pound jumping as traders priced in a December interest rate hike from the Bank of England, emboldened also by Tuesday's upbeat UK jobless data.

"Stock markets have been struggling to build a strong earnings season recently as inflation and interest rates have topped the list of investors' concerns over the coming months," OANDA analyst Craig Erlam said.

"Gone are the days when bad news (data) is good news and central bank inaction keeps the party going in equity markets".

That was less true across the Channel in Europe, where European Central Bank chief Christine Lagarde has pushed back on talks of rate rises even as far out as 2023.

Her deputy Luis de Guindos told Bloomberg TV Wednesday that "the reality check is going to be the evolution of inflation next year".

"If you look at the drivers, the transitory nature of these drivers of inflation are quite clear," he added -- suggesting no shift in eurozone monetary policy for now.

Frankfurt and Paris were both slightly higher by mid-afternoon, while the euro fell against the pound and the dollar.

European stocks mostly rise; London hit by strong pound

And Turkey's lira fell to a new record low against the greenback as President Recep Tayyip Erdogan promised to "lift the interest rate burden from citizens" -- even as inflation runs close to 20 percent.

Oil prices sank as traders digested rising US crude reserves, indicating weaker demand in the world's top crude consumer.

Oil falls as US gasoline stock draw raises prospect of SPR release

"It is a mixed picture for European markets with the FTSE 100 under pressure... following a spike in the pound against the euro on the back of hot UK inflation figures," said Interactive Investor analyst Victoria Scholar.

"Travel and leisure is at the bottom... amid concerns about rising Covid cases while banks and basic resources are outperforming."

Inflation continues to fuel expectations that global central banks will be forced to tighten monetary policy quicker than expected.

Tuesday data showing a strong US retail sector provided more support to calls for the Federal Reserve to act sooner to prevent overheating and make sure prices do not run out of control.

Top Fed official James Bullard said the bank should take a "more hawkish" shift and that the tapering of its vast bond-buying programme -- which has helped support an extended global equity rally -- "could move faster".

In Asia, Hong Kong retreated for the first time after a six-day run-up, while Tokyo, Sydney, Seoul, Singapore, Mumbai, Manila and Wellington also fell.

However, Shanghai and Taipei reversed early losses while there were mild gains in Bangkok and Jakarta.

Key figures around 1445 GMT

New York - Dow: DOWN 0.1 percent at 36,091.68 points

London - FTSE 100: DOWN 0.4 percent at 7,297.78

Frankfurt - DAX: UP 0.1 percent at 16,259.99

Paris - CAC 40: UP 0.1 percent at 7,156.88

EURO STOXX 50: UP less than 0.1 percent at 4,403.31

Tokyo - Nikkei 225: DOWN 0.4 percent at 29,688.33 (close)

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 25,650.08 (close)

Shanghai - Composite: UP 0.4 percent at 3,537.37 (close)

Euro/dollar: DOWN at $1.1316 from $1.1320 at 2200 GMT

Pound/dollar: UP at $1.3486 from $1.3430

Euro/pound: DOWN at 83.92 pence from 84.29 pence

Dollar/yen: DOWN at 114.59 yen from 114.82 yen

Brent North Sea crude: DOWN 0.6 percent at $81.96 per barrel

West Texas Intermediate: DOWN 0.9 percent at $80.04 per barrel

The Commerce Department reported retail sales rose 1.7 percent in October from September, above expectations and their biggest month-on-month jump since March.

"The key takeaway from the report is that spending picked up across most retail categories, reflecting the dissipating impact of the Delta variant," said Briefing.com analyst Patrick O'Hare, who pointed to simmering concerns about inflation and Federal Reserve policies as factors restraining a bigger equity rally.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.4 percent at 36,239.37.

The broad-based S&P 500 gained 0.3 percent to 4,696.23, while the tech-rich Nasdaq Composite Index climbed 0.2 percent to 15,881.79.

Stellar jobs data push US stocks to new records

Among individual companies, Walmart fell 0.9 percent as the giant retailer lifted its full-year forecast behind stronger-than-expected results, but acknowledged it was not passing along all the hit from higher costs to consumers.

Fellow retail giant Home Depot surged 3.6 percent as it easily topped earnings estimates on a nearly 10 percent increase in quarterly sales to $36.8 billion.

Stocks appeared headed for another benign session a day after closing at fresh records following a heavily-telegraphed Federal Reserve decision Wednesday to trim stimulus.

The US trade deficit surged in September to another record behind rising imports of computers and industrial supplies, while new applications for US unemployment benefits declined for the fifth straight week.

The claims data comes ahead of Friday's Department of Labor report, estimated by analysts to show a gain of 400,000 jobs in the United States in October, with unemployment edging down to 4.7 percent.

US stocks mixed ahead of Fed announcement

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.1 percent to 36,128.51.

The broad-based S&P 500 added 0.2 percent at 4,668.58, while the tech-rich Nasdaq Composite Index rose 0.3 percent to 15,855.25.

All three major indices ended at records on Wednesday after Fed said it would begin to slow its stimulus bond purchases this month as it pointed to a solid recovery in the US economy.

Major indices have closed at records the last three sessions, but were under pressure ahead of an expected Fed announcement later Wednesday to trim back stimulus bond purchases.

The Fed's accommodative stance, along with strong earnings, have helped propel stocks to records in recent weeks.

"There isn't much fear about the Fed taking away the punch bowl," said Briefing.com analyst Patrick O'Hare.

"What will be interesting to see is if the stock market keeps charging on the expected outcome or sees it as an opportunity to sell the news following a huge run that has been predicated in part on the belief that the Fed isn't going to raise its policy rate anytime soon."

About 20 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 35,927.39.

The broad-based S&P 500 slipped 0.1 percent to 4,626.29, while the tech-rich Nasdaq Composite Index added 0.1 percent to 15,660.69.

US stocks pause ahead of Fed decision

Data from payroll service firm ADP said that private businesses hired 571,000 workers last month, a better-than-expected figure that comes ahead of Friday's important government jobs data for October.

Among individual companies reporting results, Lyft surged 9.2 percent while Activision Blizzard sank 15.3 percent.

Zillow also lost more than 15 percent as it announced it was winding down its home purchasing company after concluding the business was too volatile.

Deere & Company shed 2.8 percent after workers from the United Auto Workers voted down the latest contract offer, extending a strike that began three weeks ago.

World oil prices sank as concerns about China tempered demand expectations.

Wall Street pulled back modestly at the opening bell after closing at record highs on Tuesday.

Meanwhile in Europe, London was lower, Frankfurt flat, and Paris rose to break a record intra-day high that had stood for 21 years.

"If there is no sign of stress across... markets, it's mostly because we all think we know what will come out from today's (Fed) meeting: a gradual start of the tapering of the bond purchases programme," said SwissQuote analyst Ipek Ozkardeskaya.

With Wall Street racking up a third straight day of record highs on Tuesday, investors were easily able to put aside long-running worries about surging inflation and the prospect of higher interest rates.

"With the major indices at record highs, it can be said that there isn't much fear about the Fed taking away the punch bowl," said market analyst Patrick J. O'Hare at Briefing.com.

"What will be interesting to see is if the stock market keeps charging on the expected outcome or sees it as an opportunity to sell the news following a huge run that has been predicated in part on the belief that the Fed isn't going to raise its policy rate anytime soon," he said.

With inflation surging to levels not seen for years, central banks are being forced to row back the vast financial support put in place at the start of the pandemic, which has been credited with sending equities to records and helping the economic recovery.

While the Fed has clearly signaled it will begin to "taper" or wind down its stimulus programme, investors will be listening for any indication on when it may begin to hike interest rates.

Other central banks have already lifted borrowing costs or started to tighten the purse strings.

The Bank of England is expected Thursday to raise its interest rate for the first time in more than three years to help combat soaring inflation.

But the European Central Bank is "very unlikely" to raise its interest rates even in 2022, president Christine Lagarde said Wednesday.

"Despite the current inflation surge, the outlook for inflation over the medium term remains subdued," Lagarde said in a speech in Lisbon.

In Asia, Hong Kong and Shanghai stock markets were dented again by concerns about China's economy as leaders struggle to contain a new wave of Covid infections.

Hong Kong and Shanghai slipped, with the latest Covid spike in several parts of China forcing some cities into fresh lockdowns that have led to worries about the impact on already strained supply chains in the world's number two economy.

Hong Kong shares begin on back foot

On Monday, the government urged people to stock up on daily necessities and said authorities should take steps to ensure adequate food supplies as containment measures were introduced.

A summer outbreak has been blamed for dragging on growth in the third quarter and the closure of factories will further flame fears about the recovery outlook.

Key figures around 1330 GMT

London - FTSE 100: DOWN 0.4 percent at 7,243.94 points

Frankfurt - DAX: FLAT at 15,951.07

Paris - CAC 40: UP 0.2 percent at 6,941.94

EURO STOXX 50: UP 0.1 percent at 4,302.34

New York - Dow: DOWN 0.2 percent at 35,981.44

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 25,024.75 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,498.54 (close)

Tokyo - Nikkei 225: Closed for a holiday

Euro/dollar: DOWN at $1.1572 from $1.1579 at 2100 GMT Tuesday

Dollar/yen: UP at 113.98 from 113.96 yen

Pound/dollar: UP at $1.3643 from $1.3612

Euro/pound: DOWN at 84.80 pence from 85.06 pence

Brent North Sea crude: DOWN 2.4 percent at $82.69 per barrel

West Texas Intermediate: DOWN 2.8 percent at $81.54 per barrel