China Stock Market May Take Further Damage On Tuesday

(RTTNews) - The China stock market on Monday snapped the two-day winning streak in which it had collected almost 10 points or 0.3 percent. The Shanghai Composite Index now sits just above the 3,020-point plateau and it's poised to open in the red again on Tuesday.

The global forecast for the Asian markets is soft on rising treasury yields and ahead of key U.S. employment data later this week. The European markets were mixed and little changed and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished modestly lower on Monday following losses from the properties and mixed performances from the financial shares and resource stocks.

For the day, the index slipped 8.72 points or 0.29 percent to finish at 3,022.91 after trading between 3,022.35 and 3,038.98. The Shenzhen Composite Index sank 6.34 points or 0.34 percent to end at 1,881.64.

Among the actives, Industrial and Commercial Bank of China fell 0.21 percent, while Bank of China slid 0.25 percent, China Construction Bank collected 0.65 percent, China Merchants Bank shed 0.64 percent, Bank of Communications rose 0.35 percent, China Life Insurance tanked 2.48 percent, Jiangxi Copper rallied 1.53 percent, Aluminum Corp of China (Chalco) tumbled 1.97 percent, Yankuang Energy advanced 0.82 percent, PetroChina perked 0.28 percent, China Petroleum and Chemical (Sinopec) improved 0.74 percent, Huaneng Power gained 0.52 percent, China Shenhua Energy increased 0.79 percent, Gemdale plunged 2.66 percent, Poly Developments plummeted 2.83 percent and China Vanke slumped 1.93 percent.

The lead from Wall Street is weak as the major averages opened lower on Tuesday, pared their losses but still ended firmly in the red.

The Dow dropped 41.06 points or 0.11 percent to finish at 36,204.44, while the NASDAQ slumped 119.54 points or 0.84 percent to close at 14,185.49 and the S&P 500 sank 24.85 points or 0.54 percent to end at 4,569.78.

A rebound by treasury yields contributed to the weakness on Wall Street, as the yield on the benchmark ten-year note bounced off its lowest levels in three months.

Selling pressure waned over the course of the session, however, as traders looked ahead to the release of the Labor Department's closely watched monthly jobs report on Friday.

In economic news, The Commerce Department released a report showing factory orders pulled back by much more than expected in the month of October.

Crude oil prices drifted lower on Monday, pushing the most active futures contract to a nearly three-week low amid worries about the outlook for demand and skepticism about OPEC output cuts. The dollar's rise also weighed on oil prices. West Texas Intermediate Crude oil futures for January ended lower by $1.03 or 1.4 percent at $73.04 a barrel, the lowest settlement since November 16.