China Stock Market Tipped To Open In The Red

(RTTNews) - The China stock market turned lower again on Monday, one session after snapping the three-day slide in which it had stumbled more than 40 points or 1.4 percent. The Shanghai Composite Index now sits just beneath the 3,085-point plateau and the losses may accelerate on Tuesday.

The global forecast for the Asian markets is mixed to lower, with oil and technology stocks expected to weigh. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The SCI finished slightly lower on Monday as losses from the resource and energy stocks were offset by gains from the financials and properties.

For the day, the index eased 3.89 points or 0.13 percent to finish at 3,083.40 after trading between 3,075.22 and 3,121.41. The Shenzhen Composite Index dipped 5.15 points or 0.26 percent to end at 2,012.81.

Among the actives, China Construction Bank rose 0.37 percent, while China Merchants Bank surged 6.08 percent, Bank of Communications collected 0.44 percent, China Life Insurance spiked 3.54 percent, Jiangxi Copper tanked 2.37 percent, Aluminum Corp of China (Chalco) dipped 0.23 percent, Yankuang Energy plummeted 6.16 percent, PetroChina fell 0.40 percent, Huaneng Power shed 0.42 percent, China Shenhua Energy plunged 4.19 percent, Gemdale surged by the 10 percent daily limit, Poly Developments rallied 2.91 percent, China Vanke accelerated 4.00 percent, Beijing Capital Development plummeted 6.24 percent and Industrial and Commercial Bank of China, Bank of China and China Petroleum and Chemical (Sinopec) were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Monday, bounced higher in the afternoon but then a late swoon sent them all into the red at the close.

The Dow dropped 211.16 points or 0.63 percent to finish at 33,536.70, while the NASDAQ slumped 127.11 points or 1.12 percent to end at 11,196.22 and the S&P 500 lost 35.68 points or 0.89 percent to close at 3,957.25.

The volatility on Wall Street came as traders expressed some uncertainty about the near-term outlook for the markets following last week's rally.

The lower close on the day came despite comments from Federal Reserve Vice Chair Lael Brainard that added to optimism about a slower pace of rate hikes.

Crude oil prices slumped Monday on concerns about the outlook for energy demand from China, a downward revision in demand growth forecast by OPEC and a stronger dollar. West Texas Intermediate Crude oil futures for December ended lower by $3.09 or 3.5 percent at $85.87 a barrel.

Closer to home, China will provide October data for industrial production, retail sales, fixed asset investment and unemployment later this morning.

Industrial production is expected to rise 5.2 percent on year, slowing from 6.3 percent in September. Sales are expected to add an annual 1.0 percent, down from 2.5 percent a month earlier. FAI is called steady at 5.9 percent on year, while the jobless rate is also called unchanged, at 5.5 percent.