China Stock Market May See Continued Consolidation
(RTTNews) - The China stock market on Tuesday wrote a finish to the six-day winning streak in which it had gathered more than 140 points or 4.8 percent. The Shanghai Composite Index now rests just above the 3,020-point plateau and it may see continued selling pressure on Wednesday.
The global forecast for the Asian markets suggests mild upside on expectations of further stimulus. The European markets were up and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.
The SCI finished slightly lower on Tuesday as losses from the financial shares were offset by support from the oil companies and a mixed picture from the property sector.
For the day, the index eased 3.54 points or 0.12 percent to finish at 3,021.20 after trading between 3,005.38 and 3,027.41. The Shenzhen Composite Index fell 1.90 points or 0.11 percent to end at 1,687.31.
Among the actives, Industrial and Commercial Bank of China shed 0.18 percent, while Bank of China lost 0.28 percent, China Construction Bank slid 0.48 percent, China Merchants Bank tumbled 1.41 percent, China Life Insurance skidded 1.12 percent, Ping An Insurance dropped 1.06 percent, PetroChina added 0.32 percent, China Petroleum and Chemical (Sinopec) rose 0.58 percent, China Shenhua Energy dipped 0.20 percent, Gemdale retreated 1.26 percent, Poly Developments fell 0.57 percent, China Vanke advanced 0.63 percent and CITIC Securities sank 0.49 percent.
The lead from Wall Street continues to be murky as stocks saw another lackluster performance on Tuesday, eventually closing mixed and roughly flat for the third consecutive session.
The Dow added 73.92 points or 0.28 percent to 26,909.43, while the NASADQ fell 3.28 points or 0.04 percent to 8,084.16 and the S&P 500 rose 0.96 points or 0.03 percent to 2,979.39.
The early weakness on Wall Street reflected uncertainty ahead of the European Central Bank's monetary policy decision on Thursday as well as next week's Federal Reserve meeting. Both the ECB and the Fed are expected to cut interest rates in reaction to indications of a global slowdown.
The weaker than expected jobs data released last Friday raised concerns about the economic outlook but also reinforced expectations of another interest rate cut by the Fed next week.
Crude oil prices edged lower on Tuesday, with traders taking profits after recent strong gains and looking ahead to weekly inventory reports. West Texas Intermediate Crude oil futures for October were down $0.45 or 0.8 percent at $57.40 a barrel.