Lower Open Anticipated For China Stock Market

(RTTNews) - The China stock market on Tuesday snapped the four-day losing streak in which it had plummeted more than 200 points or 6 percent. The Shanghai Composite Index now sits just beneath the 3,230-point plateau although it's expected to see renewed selling pressure on Wednesday.

The global forecast for the Asian markets is negative on renewed concerns about the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The SCI finished modestly higher on Tuesday as gains from the financials and properties were capped by weakness from the energy companies.

For the day, the index improved 22.72 points or 0.71 percent to finish at 3,229.64 after trading between 3,190.46 and 3,230.85. The Shenzhen Composite Index rallied 29.56 points or 1.60 percent to end at 1,879.02.

Among the actives, Industrial and Commercial Bank of China collected 1.21 percent, while Bank of China jumped 1.30 percent, China Construction Bank rallied 2.00 percent, China Merchants Bank improved 1.35 percent, Agricultural Bank of China gained 1.35 percent, China Life Insurance lost 0.59 percent, Jiangxi Copper advanced 0.97 percent, Aluminum Corp of China (Chalco) rose 0.28 percent, Yankuang Energy skidded 1.01 percent, PetroChina sank 0.79 percent, China Petroleum and Chemical (Sinopec) and Huaneng Power both shed 0.46 percent, China Shenhua Energy tumbled 1.70 percent, Gemdale soared 3.27 percent, Poly Developments strengthened 1.52 percent and China Vanke climbed 1.00 percent.

The lead from Wall Street is bleak as the major averages opened slightly higher on Tuesday but quickly turned lower and finished deep in the red.

The Dow stumbled 178.20 points or 0.42 percent to finish at 42,528.36, while the NASDAQ plummeted 375.30 points or 1.89 percent to close at 19,489.68 and the S&P 500 sank 66.35 points or 1.11 percent to end at 5,909.03.

The sharp pullback by stocks came amid a notable increase by treasury yields, with the yield on the benchmark 10-year note surging to its highest closing level in eight months.

The jump by treasury yields, which led to concerns about the outlook for interest rates, came following the release of some upbeat U.S. economic data.

The Institute for Supply Management said U.S. service sector activity increased more than expected in December. The report also said the prices index surged to a one-year high, leading to concerns that inflation will remain sticky. Also, the Labor Department said job openings in the U.S. unexpectedly increased in November.

Oil prices climbed higher Tuesday amid a possible supply shortage after China decided to reject imports from Iran and Russia, while unusually cold weather in the U.S. also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures for February closed up $0.69 or 0.94 percent at $74.25 a barrel.