China Stock Market Tipped To Open Under Pressure

(RTTNews) - The China stock market moved lower again on Tuesday, one day after snapping the two-day losing streak in which it had slumped more than 40 points or 1.3 percent. The Shanghai Composite Index now rests just above the 3,135-point plateau and the losses could accelerate on Wednesday.

The global forecast for the Asian markets is mixed to lower ahead of key U.S. inflation data later today. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished slightly lower on Tuesday following losses from the financials and properties, while the resource stocks were mixed.

For the day, the index shed 5.72 points or 0.18 percent to finish at 3,137.06 after trading between 3,134.32 and 3,147.51. The Shenzhen Composite Index eased 1.64 points or 0.08 percent to end at 1,951.27.

Among the actives, Industrial and Commercial Bank of China collected 0.22 percent, while Bank of China shed 0.54 percent, China Merchants Bank eased 0.09 percent, Bank of Communications dipped 0.18 percent, China Life Insurance tanked 2.14 percent, Jiangxi Copper lost 0.50 percent, Aluminum Corp of China (Chalco) retreated 1.50 percent, Yankuang Energy skidded 1.19 percent, PetroChina fell 0.37 percent, China Petroleum and Chemical (Sinopec) perked 0.16 percent, Huaneng Power jumped 1.81 percent, China Shenhua Energy was up 0.07 percent, Gemdale sank 0.41 percent, Poly Developments dropped 1.02 percent, China Vanke declined 0.36 percent and China Construction Bank was unchanged.

The lead from Wall Street is soft as the major averages opened lower on Tuesday, rallied midday and then finished under water.

The Dow dipped 17.73 points or 0.05 percent to finish at 34,645.99, while the NASDAQ tumbled 144.28 points or 1.04 percent to close at 13,773.61 and the S&P 500 sank 25.56 points or 0.57 percent to end at 4,461.90.

The lower close on Wall Street came as traders look ahead to the release of the Labor Department's highly anticipated report on consumer price inflation later today.

The inflation data could have a significant impact on the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week; CME Group's FedWatch Tool is currently indicating a 93.0 percent chance the Fed will leave interest rates unchanged.

A steep drop by shares of Oracle (ORCL) weighed on the tech-heavy NASDAQ, with the software giant plunging by 13.5 percent after the company reported weaker than expected fiscal first quarter revenues and provided disappointing revenue guidance for the current quarter.

Oil prices moved sharply higher on Tuesday to a 10-month closing high after the monthly report from (OPEC) showed the oil market may be a lot tighter than initially thought. West Texas Intermediate Crude oil futures for October ended higher by $1.55 or 1.8 percent at $88.84 a barrel.