Continued Consolidation Called For Hong Kong Shares

(RTTNews) - The Hong Kong stock market has moved lower in two of three trading days since the end of the five-day winning streak in which it had rallied almost 1,300 points or 5.1 percent. The Hang Seng Index now sits just above the 25,520-point plateau and it may tick lower again on Wednesday.

The global forecast for the Asian markets is flat to lower ahead of the FOMC rate decision scheduled for later today. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The Hang Seng finished slightly lower on Tuesday following losses from the financial shares and mixed performances from the technology and property sectors.

For the day, the index lost 37.68 points or 0.15 percent to finish at 25,524.45 after trading between 25,252.32 and 25,530.42.

Among the actives, Alibaba Group was up 0.08 percent, while Alibaba Health Info improved 0.83 percent, ANTA Sports advanced 1.04 percent, China Life Insurance skidded 1.08 percent, China Resources Land eased 0.17 percent, CITIC fell 0.32 percent, CNOOC added 0.53 percent, CSPC Pharmaceutical skyrocketed 8.46 percent, Galaxy Entertainment strengthened 2.39 percent, Haier Smart Home lost 0.58 percent, Hang Lung Properties jumped 2.51 percent, Henderson Land gained 0.18 percent, Hong Kong & China Gas rose 0.14 percent, Industrial and Commercial Bank of China slumped 0.82 percent, JD.com shed 0.61 percent, Li Auto accelerated 3.45 percent, Li Ning climbed 1.07 percent, Meituan sank 0.62 percent, New World Development spiked 3.15 percent, Nongfu Spring rallied 2.65 percent, Techtronic Industries soared 3.92 percent, Xiaomi Corporation stumbled 2.64 percent, WuXi Biologics surged 5.00 percent and China Mengniu Dairy and Lenovo were unchanged.

The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower, ending near session lows.

The Dow slumped 204.57 points or 0.46 percent to finish at 44,632.99, while the NASDAQ shed 80.29 points or 0.38 percent to close at 21,098.29 and the S&P 500 sank 18.91 points or 0.30 percent to end at 6,370.86.

The pullback on Wall Street may reflected profit taking following the upward trend seen over the past several sessions, which saw the NASDAQ and the S&P 500 reach new record highs.

Traders also seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today. While the Fed is expected to leave interest rates unchanged, the announcement could impact the outlook for rates.

In economic news, the Conference Board released a report showing consumer confidence in the U.S. saw a modest improvement in July. Also, the Labor Department said job openings in the U.S. decreased by slightly less than expected in June.

Crude oil prices moved higher on Tuesday as the U.S. deadline for Russia to finalize an agreement with Ukraine or face sanctions draws nearer. West Texas Intermediate crude for September delivery was up $2.81 or 4.21 percent to $69.52 per barrel.