China Stock Market Tipped To Open In The Red On Tuesday

(RTTNews) - The China stock market headed south again on Monday, one session after ending the three-day losing streak in which it had slipped more than 50 points or 1.3 percent. The Shanghai Composite Index now sits just beneath the 3,870-point plateau and it may extend its losses on Tuesday.

The global forecast for the Asian markets is flat to lower, with weakness from the technology and oil sectors limiting the upside. The European markets were up 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 property, resource and energy stocks, while the financial sector came in mixed.

For the day, the index lost 21.42 points or 0.55 percent to finish at 3,867.92 after trading between 3,863.63 and 3,896.98. The Shenzhen Composite Index sank 18.99 points or 0.77 percent to end at 2,454.42.

Among the actives, Industrial and Commercial Bank of China sank 0.26 percent, while Bank of China collected 0.36 percent, Agricultural Bank of China slumped 1.45 percent, China Merchants Bank perked 0.14 percent, Bank of Communications slipped 0.27 percent, China Life Insurance jumped 1.57 percent, Jiangxi Copper retreated 1.20 percent, Aluminum Corp of China (Chalco) tumbled 1.95 percent, Yankuang Energy and China Shenhua Energy both fell 0.23 percent, PetroChina shed 0.31 percent, China Petroleum and Chemical (Sinopec) rose 0.35 percent, Huaneng Power added 0.51 percent, Gemdale contracted 1.90 percent, Poly Developments tanked 2.34 percent and China Vanke stumbled 2.99 percent.

The lead from Wall Street is weak as the major averages opened slightly higher on Monday but quickly slipped under water and spent the balance of the day hugging the line from below.

The Dow slumped 41.49 points or 0.09 percent to finish at 48,416.56, while the NASDAQ dropped 137.76 points or 0.59 percent to end at 23,057.41 and the S&P 500 sank 10.90 points or 0.16 percent to close at 6,816.51.

The weakness that emerged on Wall Street came on continued uncertainty about AI spending and the possibility of a tech bubble.

Traders were also reluctant to make significant moves ahead of the release of some key U.S. economic data in the coming days, including retail sales and inflation.

The data could impact the outlook for interest rates following the Federal Reserve's monetary policy announcement last Wednesday. While the Fed cut rates by another quarter point, as widely expected, officials' projections showed significant differences of opinion about further rate cuts.

The price of crude oil retreated on Monday as lingering oversupply concerns offset worries about potential supply disruptions. West Texas Intermediate crude for January delivery was down $0.62 or 1.1 percent to $56.82 per barrel.