BEIJING (dpa-AFX) - The China stock market on Monday wrote a finish to the two-day sinning streak in which it had gathered more than 50 points or 1.5 percent. The Shanghai Composite Index now rests just beneath the 3,225-point plateau and it's expected to open lower again on Tuesday.
The global forecast for the Asian markets mixed to lower, with oil and technology stocks likely to extend recent losses. The European markets were up and the U.S. markets were mostly lower and the Asian bourses figure to follow the latter lead.
The SCI finished sharply lower on Monday following losses from the financials, properties, resource stocks and energy companies.
For the day, the index tumbled 86.21 points or 2.60 percent to finish at the daily low of 3,223.53 after peaking at 3,297.80. The Shenzhen Composite Index plunged 63.68 points or 2.93 percent to end at 2,109.46.
Among the actives, Industrial and Commercial Bank of China shed 0.43 percent, while Bank of China fell 0.32 percent, China Construction Bank retreated 1.49 percent, China Merchants Bank plummeted 5.17 percent, Bank of Communications dipped 0.42 percent, China Life Insurance tumbled 1.72 percent, Jiangxi Copper surrendered 4.18 percent, Aluminum Corp of China (Chalco) tanked 5.49 percent, Yankuang Energy sank 0.79 percent, PetroChina declined 2.15 percent, China Petroleum and Chemical (Sinopec) dropped 0.96 percent, Huaneng Power plunged 6.54 percent, China Shenhua Energy stumbled 2.60 percent, Gemdale slumped 1.85 percent, Poly Developments gained 0.68 percent, China Vanke weakened 3.36 percent and China Fortune Land skidded 3.05 percent.
The lead from Wall Street is soft as the major averages were unable to hold early gains on Monday, slipping into negative territory as the session progressed although the Dow finished barely in the green.
The Dow rose 1.05 points or 0.00 percent to finish at 32,945.24, while the NASDAQ plummeted 262.59 points or 2.04 percent to close at 12,581.22 and the S&P 500 shed 31.20 points or 0.74 percent to end at 4,173.11.
The steep drop by the NASDAQ came amid a spike in treasury yields, with the yield on the benchmark ten-year note reaching its highest levels in well over two years. Treasury yields soared as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.
With the Fed widely expected to raise interest rates by 25 basis points, traders will pay close attention to the accompanying statement for clues about further rate hikes.
The central bank is likely to continue raising rates over the comings months in an effort to combat elevated inflation, although the economic impact of the Russia-Ukraine conflict may affect the pace.
Crude oil prices fell sharply Monday amid easing worries about supply on reports the U.S. is likely to lift sanctions on Venezuelan oil. West Texas Intermediate Crude oil futures for April ended lower by $6.32 or 5.8 percent at $103.01 a barrel.
Closer to home, China will provide February data for industrial production, retail sales, fixed asset investment and unemployment later this morning. Industrial production is expected to rise 3.9 percent on year, slowing from 4.3 percent in January. Retail sales are tipped to advance an annual 3.0 percent, up from 1.7 percent in the previous month. FAI is seen higher by 5.0 percent on year, up from 4.9 percent a month earlier. The jobless rate is called steady at 5.1 percent.
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