China Bourse May Extend Tuesday's Losses

(RTTNews) - The China stock market on Tuesday snapped the two-day winning streak in which it had gathered almost 20 points or 0.6 percent. The Shanghai Composite Index now rests just beneath the 3,070-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets suggests consolidation on profit taking and weak retail earnings. The European and U.S. markets were down and the Asian markets are tipped to open in similar fashion.

The SCI finished barely lower on Tuesday as losses from the power companies were offset by support from the properties and a mixed picture from the financial sector.

For the day, the index eased 0.39 points or 0.01 percent to finish at 3,067.93 after trading between 3,063.34 and 3,089.77. The Shenzhen Composite Index shed 7.49 points or 0.39 percent to end at 1,929.00.

Among the actives, China Construction Bank perked 0.16 percent, while China Merchants Bank shed 0.49 percent, Bank of Communications dipped 0.17 percent, China Life Insurance collected 0.77 percent, Jiangxi Copper rose 0.33 percent, Aluminum Corp of China (Chalco) strengthened 1.39 percent, Yankuang Energy lost 0.40 percent, PetroChina added 0.42 percent, China Petroleum and Chemical (Sinopec) was up 0.18 percent, Huaneng Power retreated 1.31 percent, China Shenhua Energy eased 0.03 percent, Gemdale surged 3.51 percent, Poly Developments rallied 1.76 percent, China Vanke soared 3.03 percent and Industrial and Commercial Bank of China and Bank of China were unchanged.

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

The Dow dropped 62.75 points or 0.18 percent to finish at 35,088.29, while the NASDAQ tumbled 84.55 points or 0.59 percent to end at 14,199.98 and the S&P 500 fell 9.19 points or 0.20 percent to close at 4,538.19.

The pullback on Wall Street came as some traders looked to cash in on the recent strength in the markets, which has lifted the major averages to their best levels in over three months.

A negative reaction to some of the latest earnings news from major retailers also weighed on Wall Street, with disappointing results from the likes of American Eagle Outfitters (AEO), Kohl's (KSS), Lowe's (LOW) and Best Buy (BBY).

The markets did not show much reaction to the minutes of the Federal Reserve's latest monetary policy meeting, which said Fed officials expect to keep interest rates at a restrictive level for "some time."

Crude oil futures settled slightly lower Tuesday ahead of this weekend's OPEC meeting as investors wait to see if more production cuts may be in store. West Texas Intermediate Crude oil futures for January eased $0.06 at $77.77 a barrel.