Lower Open Predicted For China Stock Market
(RTTNews) - The China stock market on Monday snapped the three-day losing streak in which it had retreated more than 35 points or 1.3 percent. The Shanghai Composite Index now rests just above the 2,875-point plateau although it's tipped to open under pressure on Tuesday.
The global forecast for the Asian markets is negative as soft data stoked fears for the health of the world economy. The European and U.S. markets were down and the Asian bourses are predicted to open in similar fashion.
The SCI finished slightly higher on Monday as gains from the property stocks were offset by weakness from the oil and insurance companies and a mixed picture from the financial sector.
For the day, the index rose 3.83 points or 0.13 percent to finish at 2,875.81 after trading between 2,870.24 and 2,888.89. The Shenzhen Composite Index added 3.50 points or 0.22 percent to end at 1,596.60.
Among the actives, Industrial and Commercial Bank of China collected 0.35 percent, while Bank of China shed 0.28 percent, China Construction Bank added 0.28 percent, China Merchants Bank rose 0.22 percent, China Life Insurance lost 0.34 percent, Ping An Insurance fell 0.39 percent, PetroChina was down 0.54 percent, China Petroleum and Chemical (Sinopec) sank 0.80 percent, Baoshan Iron and Steel eased 0.18 percent, Gemdale surged 3.95 percent, Poly Developments soared 3.67 percent, China Vanke climbed 1.26 percent and China Minsheng Bank was unchanged.
The lead from Wall Street is soft as stocks showed a notable move to the downside on Monday, extending losses from the previous session and pulling back further from the record highs set last Wednesday.
The Dow shed 268.37 points or 0.96 percent to 27,783.04, while the NASDAQ lost 97.48 points or 1.12 percent to 8,567.99 and the S&P 500 fell 27.11 points or 0.86 percent to 3,113.87.
The continued weakness on Wall Street followed a report from the Institute for Supply Management noting continued contraction in U.S. manufacturing activity in November. A separate report from the Commerce Department showed an unexpected decrease in U.S. construction spending in October.
Traders also reacted to President Donald Trump announcing plans to reinstate tariffs on metal imports from Brazil and Argentina.
The price of crude oil regained some ground during on Monday following Friday's substantial decline. Crude oil for February delivery climbed $0.79 or 1.4 percent to $55.96 a barrel after plummeting $2.94 or 5.1 percent to $55.17 a barrel in the previous session.
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