(RTTNews.com) - The China stock market on Tuesday snapped the two-day winning streak in which it had surged almost 170 points or 7 percent. The Shanghai Composite Index now rests just beneath the 2,600-point plateau and it may take further damage on Wednesday.
The global forecast for the Asian markets remains grim thanks to geopolitical concerns, economic outlook and plummeting crude oil prices. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.
The SCI finished sharply lower on Tuesday with profit taking across the board - particularly among the financials, properties and resource stocks.
For the day, the index sank 60.05 points or 2.26 percent to finish at 2,594.83 after trading between 2,583.26 and 2,659.81. The Shenzhen Composite Index dropped 25.44 points or 1.92 percent to end at 1,300.29.
Among the actives, China Construction Bank tumbled 3.20 percent, while Bank of China shed 2.16 percent, Industrial and Commercial Bank of China lost 2.84 percent, China Merchants Bank skidded 3.27 percent, China Life Insurance retreated 2.87 percent, China Petroleum and Chemical (Sinopec) dropped 3.25 percent, PetroChina retreated 2.07 percent, China Shenhua Energy fell 0.94 percent, Gemdale declined 2.63 percent, Poly Developments plunged 3.00 percent, China Vanke contracted 2.98 percent, CITIC Securities dipped 1.21 percent, Jiangxi Copper lost 2.02 percent, Aluminum Corporation of China (Chalco) dropped 2.68 percent, Yanzhou Coal tumbled 4.61 percent and Anhui Cement plummeted 6.40 percent.
The lead from Wall Street is negative as stocks opened sharply lower on Tuesday. They made back considerable ground in afternoon trade but still ended in the red.
The Dow shed 125.98 points or 0.50 percent to finish at 25,191.43, while the NASDAQ lost 31.09 points or 0.42 percent to 7,437.54 and the S&P 500 fell 15.19 points or 0.55 percent to 2,640.69.
The early sell-off reflected an extension of the significant weakness seen in overseas markets, which came amid worries about global economic growth and mounting geopolitical tensions.
A negative reaction to quarterly results from some big-name companies also contributed to sharp decline by stocks - including Caterpillar (CAT) and 3M Co. (MMM), although McDonald's (MCD) beat the street.
Crude oil prices plunged sharply on Tuesday amid speculation of a possible drop in demand due to uncertainty about the outlook for global economic growth. Crude oil futures for December delivery were down $2.93 or 4.2 percent at $66.43 a barrel, the lowest settlement since August 20.
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