China Stock Market Tipped To Open Under Water On Wednesday

(RTTNews) - The China stock market has finished lower in three consecutive sessions, slumping more than 90 points or 2.3 percent along the way. The Shanghai Composite Index now sits just beneath the 3,940-point plateau and it's looking at another soft start again on Wednesday.

The global forecast for the Asian markets is weak on persistent concerns about an AI bubble. The European and U.S. markets were sharply lower and the Asian bourses also figure to open to the downside.

The SET finished modestly lower on Tuesday following losses from the property, energy and resource stocks, while the financial sector was mixed.

For the day, the index slumped 32.22 points or 0.81 percent to finish at 3,939.81 after trading between 3,926.59 and 3,966.89. The Shenzhen Composite Index sank 26.04 points or 1.04 percent to end at 2,485.79.

Among the actives, Industrial and Commercial Bank of China gained 0.37 percent, while Bank of China perked 0.17 percent, Agricultural Bank of China slumped 1.56 percent, China Merchants Bank and Bank of Communications both collected 0.54 percent, China Life Insurance dropped 0.92 percent, Jiangxi Copper surrendered 2.30 percent, Aluminum Corp of China (Chalco) crashed 3.67 percent, Yankuang Energy stumbled 3.10 percent, China Petroleum and Chemical (Sinopec) rose 0.35 percent, Huaneng Power shed 0.64 percent, China Shenhua Energy skidded 1.16 percent, Gemdale plunged 4.52 percent, Poly Developments tanked 2.34 percent, China Vanke tumbled 2.08 percent and PetroChina was unchanged.

The lead from Wall Street is negative as the major averages opened in the red and remained under water throughout the trading day.

The Dow plunged 498.50 points or 1.07 percent to finish at 46,091.74, while the NASDAQ stumbled 275.23 points or 1.21 percent to close at 22,432.85 and the S&P 500 sank 55.09 points or 0.83 percent to end at 6,617.32.

Weakness among technology stocks continued to weigh on Wall Street amid an extended decline by market leader and AI darling Nvidia (NVDA) as traders look ahead to the release of the chipmaker's quarterly results later today.

The strength of Nvidia's results and its guidance could have a significant impact on the markets amid recent concerns about an AI bubble.

On the U.S. economic front, the Commerce Department released a report showing a significant rebound by new orders for U.S. manufactured goods in the month of August.

Crude oil prices soared on Tuesday as the end of the U.S. government shutdown has accelerated expectations of brisk demand. West Texas Intermediate crude for December delivery was up $0.90 or 1.49 percent at $60.80 per barrel.