China Stock Market Tipped To Extend Losing Streak

(RTTNews) - The China stock market has moved lower in three straight sessions, slumping nearly 120 points or 4.5 percent along the way. The Shanghai Composite Index now rests just beneath the 2,790-point plateau and it's likely to open in the red again on Thursday.

The global forecast for the Asian markets suggests consolidation on a deteriorating outlook for interest rate cuts. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The SCI finished sharply lower on Wednesday following losses from the properties and mixed performances from the resource and energy companies.

For the day, the index retreated 41.98 points or 1.48 percent to finish at 2,788.55 after trading between 2,782.59 and 2,834.01. The Shenzhen Composite Index plunged 48.22 points or 3.03 percent to end at 1,544.90.

Among the actives, Industrial and Commercial Bank of China improved 0.78 percent, while Bank of China climbed 1.17 percent, China Construction Bank collected 0.73 percent, China Merchants Bank dropped 0.94 percent, Bank of Communications rose 0.17 percent, China Life Insurance advanced 0.98 percent, Jiangxi Copper skidded 1.10 percent, Aluminum Corp of China (Chalco) perked 0.18 percent, Yankuang Energy fell 0.26 percent, PetroChina shed 0.48 percent, China Petroleum and Chemical (Sinopec) added 0.51 percent, Huaneng Power was up 0.11 percent, China Shenhua Energy surged 3.80 percent, Gemdale plummeted 4.73 percent, Poly Developments plunged 2.35 percent, China Vanke tumbled 1.94 percent and Haitong Securities tanked 4.04 percent.

The lead from Wall Street is broadly negative as the major averages opened slightly lower but accelerated to the downside after the Federal Reserve's rate decision and statement.

The Dow stumbled 317.01 points or 0.82 percent to finish at 38,150.30, while the NASDAQ plummeted 345.88 points or 2.23 percent to close at 15,164.01 and the S&P 500 slumped 79.32 points or 1.61 percent to end at 4,845.65.

In the Fed's highly anticipated monetary policy announcement, it maintained the target range for the federal funds rate at 5.25 to 5.50 percent to support maximum employment and inflation at the rate of 2 percent.

However, the Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent - triggering a wave of selling in the markets.

In U.S. economic news, payroll processor ADP said private sector job growth in the U.S. slowed more than expected in January.

Oil prices slumped Wednesday, weighed down by data showing an unexpected jump in U.S. crude inventories last week, and concerns about the outlook for demand after data showed another contraction in Chinese manufacturing activity. West Texas Intermediate Crude oil futures for March fell $1.97 or 2.5 percent at $75.85 a barrel.