China Stock Market Tipped To Extend Losing Streak
(RTTNews) - The China stock market has finished lower in four straight sessions, sliding more than 75 points or 2.5 percent along the way. The Shanghai Composite Index now sits just above the 3,250-point plateau and it's looking at another soft start again on Tuesday.
The global forecast for the Asian markets is broadly negative thanks to a renewed surge in coronavirus cases and lockdown measures around the globe. The European and U.S. markets were sharply lower and the Asian markets are tipped to open in similar fashion.
The SCI finished modestly lower on Monday following losses from the financial shares and mixed performances from the property and resource stocks.
For the day, the index retreated 26.88 points or 0.82 percent to finish at 3,251.12 after trading between 3,226.60 and 3,264.45. The Shenzhen Composite Index gained 11.51 points or 0.52 percent to end at 2,212.07.
Among the actives, Industrial and Commercial Bank of China dropped 0.79 percent, while China Construction Bank shed 0.46 percent, China Merchants Bank skidded 1.46 percent, Bank of Communications lost 0.43 percent, China Life Insurance tanked 2.31 percent, PetroChina dipped 0.24 percent, China Shenhua Energy fell 0.48 percent, Huaneng Power surged 5.85 percent, Jiangxi Copper advanced 0.61 percent, Yanzhou Coal Mining perked 1.07 percent, Aluminum Corp of China was down 0.68 percent, Gemdale retreated 1.33 percent, Poly Developments added 0.24 percent, China Vanke gained 0.43 percent, Beijing Capital Development sank 0.59 percent and Bank of China and China Petroleum and Chemical (Sinopec) were unchanged.
The lead from Wall Street is bleak as stocks opened firmly lower on Monday and saw the losses accelerate as the day progressed - extending last week's losses.
The Dow plummeted 649.93 points or 2.29 percent to finish at 27,685.64, while the NASDAQ dropped 189.34 points or 1.64 percent to end at 11,358.94 and the S&P 500 sank 64.42 points or 1.86 percent to close at 3,400.97.
The sell-off on Wall Street comes amid concerns about a record resurgence in coronavirus cases, while White House officials say the pandemic can't be controlled and the administration would instead focus on vaccines and therapeutics.
The spike in new coronavirus cases comes as lawmakers in Washington remain at an impasse over a new stimulus bill. Negotiations continue, but traders appear pessimistic that an agreement on a new relief package will be reached before next week's elections.
Adding to the negative sentiment, the Commerce Department reported an unexpected slump in new home sales last month.
Crude oil prices moved lower in response to the bad news, with West Texas Intermediate sinking $1.17 or 2.94 percent to $38.55.
Closer to home, China will provide year-to-date September figures for industrial profits later today; in August, profits were down 4.4 percent on year.
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