World shares are mixed after US stocks retreat, while gold surges higher

In France, the CAC 40 gained 0.6% to 8,021.50 as departing Prime Minister Sébastien Lecornu, aiming to calm the political storm triggered by his resignation on Monday less than 24 hours after unveiling his ministers, raced to beat a deadline Wednesday to break a deadlock caused by his decision to quit.

Germany's DAX rose 0.3% to 24,455.12, while the FTSE 100 also rose 0.3%, to 9,513.67.

The futures for the S&P 500 and the Dow Jones Industrial Average were 0.2% higher.

The U.S. dollar has risen against the euro, thanks to the upheavals in France, and also against the Japanese yen.

The yen has fallen sharply on expectations that Sanae Takaichi, the conservative lawmaker likely to become the next prime minister, will push to keep interest rates low.

The dollar rose to 152.45 yen from 151.90 yen early Wednesday, while the euro slipped to $1.1625 from $1.1659.

Tokyo's benchmark Nikkei 225 shed 0.5% to 47,734.99. It had jumped to new records earlier this week after the ruling Liberal Democrats chose Takaichi as their leader last weekend. She is expected to increase spending and to advocate for easier credit, possibly slowing efforts by the Bank of Japan to raise its key interest rate. It has remained near zero for years, even as inflation has exceeded its target of about 2%, outpacing wage increases.

The government reported Wednesday that inflation-adjusted wages fell in August for the eighth straight month.

“While the economic case for tighter monetary policy remains intact, we suspect that the Bank of Japan will use the pressure by Japan’s incoming government as an opportunity to delay rate hikes until January,” Marcel Thieliant of Capital Economics said in a commentary.

Lawmakers in Japan's lower house of parliament are due to elect a successor to Prime Minister Shigeru Ishiba later this month. The Liberal Democrats hold the most seats despite not having an outright majority, so Takaishi is expected to become the country's first female prime minister.

Elsewhere in Asia, Hong Kong's Hang Seng dropped 0.5% to 26,829.46 and the S&P/ASX 200 edged 0.1% lower to 8,947.60.

Markets in mainland China and South Korea were closed for holidays.

In Taiwan, the Taiex lost 0.5%. India's Sensex was up 0.1%.

On Tuesday, the S&P 500 fell 0.4% from its all-time high and the Dow industrials lost 0.2%. The Nasdaq composite gave up 0.7%.

Tesla was the heaviest weight on the market and dropped 4.4% after unveiling cheaper versions of two of its electric car models. The stock gave back most of its leap from the prior day, when speculation and hype built after Tesla hinted at a coming product announcement.

Oracle also helped drag the market lower. It fell 2.5% after a news report suggested it’s making thin profit margins on a key line of business related to artificial-intelligence technology.

U.S. shares have rushed higher in recent months on hopes that the economy will remain resilient and that the Federal Reserve will continue to cut interest rates.

The rapid rise of artificial intelligence has helped fan buying enthusiasm, but also is raising worries that share prices may have shot too high.

Much is riding on expectations that the AI investment boom will pay off by making the global economy more productive and driving more growth. Without that increased efficiency, inflation could push higher due to upward pressure coming from the mountains of debt that the U.S. and other governments worldwide are building.

Also early Wednesday, U.S. benchmark crude oil was up 41 cents at $62.14 per barrel. Brent crude, the international standard, rose 38 cents to $65.83 per barrel.