Renewed Selling Pressure Expected For China Stock Market

(RTTNews) - The China stock market on Tuesday halted the four-day losing streak in which it had stumbled more than 115 points or 3.9 percent. The Shanghai Composite Index now sits just beneath the 2,980-point plateau although it's likely to head south again on Wednesday.

The global forecast for the Asian markets is mixed to lower, with a dose of volatility as bargain hunting may give the oversold bourses a lift - but the gains may evaporate as the day progresses. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SCI finished slightly higher on Tuesday following gains from the resource stocks and weakness from the financials, properties and oil companies.

For the day, the index rose 5.65 points or 0.19 percent to finish at 2,979.79 after trading between 2,953.50 and 2,986.91. The Shenzhen Composite Index added 11.50 points or 0.61 percent to end at 1,882.00.

Among the actives, Industrial and Commercial Bank of China rose 0.23 percent, while Bank of China fell 0.33 percent, China Merchants Bank retreated 1.26 percent, China Life Insurance climbed 1.12 percent, Jiangxi Copper advanced 0.86 percent, Aluminum Corp of China (Chalco) gained 0.74 percent, Yankuang Energy tanked 2.64 percent, PetroChina slumped 1.14 percent, China Petroleum and Chemical (Sinopec) lost 0.46 percent, Huaneng Power surged 6.33 percent, China Shenhua Energy stumbled 1.16 percent, Gemdale plummeted 5.26 percent, Poly Developments tumbled 2.35 percent, China Vanke plunged 4.39 percent, China Fortune Land dropped 1.23 percent and China Construction Bank and Bank of Communications were unchanged.

The lead from Wall Street ends up weak as the major averages saw considerable volatility on Tuesday, opening lower before rallying and then handing back the gains to finish mixed.

The Dow rose 36.31 points or 0.12 percent to finish at 29,239.19, while the NASDAQ tumbled 115.91 points or 1.10 percent to end at 10,426.19 and the S&P 500 sank 23.55 points or 0.65 percent to close at 3,588.84.

The early weakness on Wall Street was due to concerns about rising interest rates and the impact of high borrowing costs on corporate earnings and economic growth. A downward revision in the global economic growth forecast by the International Monetary Fund also weighed.

The markets rebounded when treasury yields ticked lower, but stocks faltered past mid-afternoon after the Bank of England said that its market intervention will be over soon.

Oil futures fell on Tuesday, extending losses from the previous session on concerns about outlook for energy demand amid the rising possibility of a global recession. A surge in COVID-19 cases in China and fears of further monetary policy tightening also weighed. West Texas Intermediate Crude oil futures for November sank $1.78 or 2 percent at $89.35 a barrel.