Markets

China Bourse Likely To Give Up Support At 3,300 Points

(RTTNews) - The China stock market turned lower again on Monday, one session after it had ended the two-day slide in which it had retreated more than 25 points or 0.7 percent. The Shanghai Composite Index now sits just above the 3,315-point plateau and it's got another red light for Tuesday's trade.

The global forecast for the Asian markets is broadly negative on rising coronavirus concerns and the resulting slide in crude oil prices. The European and U.S. markets were firmly in the red and the Asian bourses are tipped to follow suit.

The SCI finished modestly lower on Monday following losses from the financial shares, property stocks and insurance companies.

For the day, the index shed 21.15 points or 0.63 percent to finish at 3,316.94 after trading between 3,313.07 and 3,350.59. The Shenzhen Composite Index lost 11.61 points or 0.52 percent to end at 2,208.30.

Among the actives, Industrial and Commercial Bank of China shed 0.40 percent, while Bank of China lost 0.62 percent, China Construction Bank fell 0.48 percent, China Merchants Bank skidded 1.00 percent, Bank of Communications sank 0.64 percent, China Life Insurance tanked 2.81 percent, Ping An Insurance plunged 2.36 percent, PetroChina slid 0.47 percent, China Petroleum and Chemical (Sinopec) added 0.25 percent, China Shenhua Energy rose 0.06 percent, Gemdale tumbled 2.02 percent, Poly Developments declined 1.61 percent and China Vanke dipped 0.55 percent.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and remained in the red throughout the day, extending losses to a fourth straight session.

The Dow plummeted 509.72 points or 1.84 percent to finish at 27,147.70, while the NASDAQ dipped 14.48 points or 0.13 percent to end at 10,778.80 and the S&P 500 sank 38.41 points or 1.16 percent to close at 3,281.06.

The sell-off on Wall Street comes amid concerns about a renewed surge in coronavirus cases in Europe, with the U.K. reportedly considering another lockdown.

The death of Supreme Court Justice Ruth Bader Ginsburg may also be weighing on the markets, as a fight over the nomination of her replacement could lead to further delays in the passage of another coronavirus relief bill.

Crude oil prices fell sharply Monday on worries about outlook for energy demand amid rising coronavirus cases in Europe. West Texas Intermediate Crude oil futures for October shed $1.80 or 4.4 percent to settle at $39.31 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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