Markets

China Stock Market May Hand Back Tuesday's Gains

(RTTNews) - The China stock market on Tuesday snapped the four-day slide in which it had stumbled more than 75 points or 2.5 percent. The Shanghai Composite Index now sits just beneath the 3,255-point plateau although it's expected to see renewed selling pressure on Wednesday.

The global forecast is mostly negative on continued concerns about the resurgence of the coronavirus and the growing unlikelihood of any stimulus to counter it. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to follow the former lead.

The SCI finished barely higher on Tuesday following gains from the cement stocks, weakness from the financials, properties and oil companies and mixed performances from the insurance stocks.

For the day, the index rose 3.20 points or 0.10 percent to finish at 3,254.32 after trading between 3,235.54 and 3,258.34. The Shenzhen Composite Index added 11.86 points or 0.54 percent to end at 2,223.92.

Among the actives, Industrial and Commercial Bank of China rose 0.20 percent, while Bank of China shed 0.31 percent, China Construction Bank sank 0.78 percent, China Merchants Bank lost 0.42 percent, Bank of Communications dropped 0.86 percent, China Life Insurance rallied 2.42 percent, Ping An Insurance declined 1.37 percent, Jiangxi Copper retreated 2.08 percent, Anhui Cement climbed 1.31 percent, PetroChina fell 0.24 percent, China Petroleum and Chemical (Sinopec) slid 0.51 percent, China Shenhua Energy gained 0.78 percent, Gemdale plummeted 3.05 percent, Poly Developments plunged 2.37 percent, China Vanke tanked 1.89 percent and Aluminum Corp of China (Chalco) was unchanged.

The lead from Wall Street is inconclusive as stocks turned in a mixed performance on Tuesday and ended on opposite sides of the unchanged line.

The Dow dropped 222.19 points or 0.80 percent to finish at 27,463.19, while the NASDAQ gained 72.41 points or 0.64 percent to end at 11,431.35 and the S&P 500 sank 10.29 points or 0.20 percent to close at 3,390.68.

The ragged trade on Wall Street came on concerns about the recent spike in coronavirus cases as well as growing uncertainty about the prospects for a new stimulus bill.

Traders were also reacting to mixed economic data, with separate reports showing a jump in durable goods orders and an unexpected dip in consumer confidence.

Crude oil prices moved higher Tuesday, lifted by reports about evacuation of over 150 offshore facilities along the U.S. Gulf Coast due to Hurricane Zeta. West Texas Intermediate Crude oil futures for December ended higher by $1.01 or 2.6 percent at $39.57 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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