China Stock Market Tipped To Open Under Pressure

The China stock market on Tuesday wrote a finish to the two-day winning streak in which it had improved almost 60 points or 2 percent. The Shanghai Composite Index now rests just above the 3,150-point plateau and it may extend its losses on Wednesday.

The global forecast for the Asian markets suggests mild consolidation on growth concerns. The European and U.S markets were down and the Asian markets are predicted to open in similar fashion.

The SCI finished modestly lower on Tuesday following losses from the financial shares and property stocks, while the resource companies were mixed.

For the day, the index sank 22.69 points or 0.71 percent to finish at 3,154.37 after trading between 3,150.08 and 3,169.74. The Shenzhen Composite Index shed 11.54 points or 0.58 percent to end at 1,870.08.

Among the actives, Industrial and Commercial Bank of China dipped 0.22 percent, while Bank of China shed 0.54 percent, China Construction Bank lost 0.66 percent, China Merchants Bank retreated 1.25 percent, Bank of Communications dropped 0.89 percent, China Life Insurance tanked 2.39 percent, Jiangxi Copper rose 0.30 percent, Aluminum Corp of China (Chalco) skidded 1.03 percent, Yankuang Energy added 0.52 percent, China Petroleum and Chemical (Sinopec) gained 0.63 percent, Huaneng Power spiked 2.82 percent, China Shenhua Energy improved 0.61 percent, Gemdale plummeted 3.73 percent, Poly Developments plunged 2.33 percent, China Vanke slumped 1.14 percent and PetroChina was unchanged.

The lead from Wall Street is weak as the major averages opened lower on Tuesday and largely remained in the red throughout the session.

The Dow dropped 195.74 points or 0.56 percent to finish at 34,641.97, while the NASDAQ dipped 10.86 points or 0.08 percent to close at 14,020.95 and the S&P 500 fell 18.94 points or 0.42 percent to end at 4,496.83.

Concerns about the outlook for global economy following the release of disappointing Chinese and European data weighed on the market. A firm dollar and higher Treasury yields hurt as well.

In economic news, the Commerce Department reported a significant pullback in factory orders in July.

Oil prices climbed higher on Tuesday after Saudi Arabia and Russia announced they will extend their voluntary production cuts by three months. West Texas Intermediate Crude oil futures for October ended higher by $1.14 or about 1.3 percent at $86.69 a barrel.

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2023-09-06 01:00:00

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