Pakistan Stock Exchange (PSX) on Thursday did not continue its previous upward momentum and decreased by 555 points reaching the 61,892 benchmark.
Asian shares retreated on Thursday after Wall Street snapped a long winning streak, while Treasury yields were near five-month lows on hopes Britain's notably soft inflation reading would be echoed in looming U.S. price data.
The equities rally, which had been driven by falling interest rates and the Federal Reserve's dovish turn, stalled on Thursday even after U.S. economic data that beat expectations initially turned the major indexes green. A far steeper-than-expected decline in British inflation also took markets by surprise.
"Three US benchmark averages sharply retreated in the late session after hitting their respective intraday highs, snapping a more-than-one-week winning streak. This could be due to an overbought market as rate cuts optimism ran out of steam," said Tina Teng, market analyst at CMC Markets.
"Global government bond yields accelerated falling due to risk-off sentiment."
European markets were set for a lower open, with the pan-region Euro Stoxx 50 futures down 0.48%, German DAX futures dipping 0.44% and FTSE futures falling 0.57%.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.3%, after U.S. stocks tumbled to close sharply lower in the previous session. The index is up 1.7% so far this month.
U.S. stock futures, the S&P 500 e-minis , were up 0.33%.
Australian shares (.AXJO) were down 0.45%, dragged down by losses in commodity-related stocks, while Japan's Nikkei stock index (.N225) slid 1.55%, slipping from near historical highs.
