China Stock Market Tipped To End Slide

(RTTNews) – The China stock market has finished lower in three straight sessions, sinking almost 85 points or 2.5 percent along the way. The Shanghai Composite Index now rests just beneath the 3,400-point plateau although it’s expected to find traction on Wednesday.

The global forecast for the Asian markets suggests mild upside, supported by technology and crude oil stocks. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SCI finished modestly lower on Tuesday following losses from the oil companies and mixed performances from the financials, properties and resource stocks.

For the day, the index shed 16.48 points or 0.48 percent to finish at 3,396.47 after trading between 3,387.90 and 3,425.39. The Shenzhen Composite Index eased 1.32 points or 0.06 percent to end at 2,187.57.

Among the actives, Industrial and Commercial Bank of China collected 0.55 percent, while Bank of China fell 0.30 percent, China Construction Bank advanced 0.82 percent, China Merchants Bank dipped 0.28 percent, Bank of Communications dropped 0.81 percent, China Life Insurance retreated 1.54 percent, Jiangxi Copper rose 0.34 percent, Aluminum Corp of China (Chalco) climbed 1.22 percent, Yanzhou Coal declined 1.41 percent, PetroChina sank 0.70 percent, China Petroleum and Chemical (Sinopec) skidded 1.37 percent, China Shenhua Energy surrendered 1.43 percent, Gemdale tumbled 1.85 percent, Poly Developments added 0.35 percent and China Vanke lost 1.05 percent.

The lead from Wall Street is cautiously optimistic as the major averages moved steadily higher on Tuesday after a mixed start, although the Dow failed to make it out of negative territory.

The Dow sank 68.13 points or 0.20 percent to finish at 33,677.27, while the NASDAQ jumped 146.10 points or 1.05 percent to end at 13,996.10 and the S&P 500 gained 13.60 points or 0.33 percent to close at 4,141.59.

Early selling pressure resulted after the U.S. Food and Drug Administration on Tuesday announced a temporarily halt on the usage of Johnson & Johnson’s (JNJ) Covid-19 vaccine after six recipients developed a rare blood clotting disorder.

But the markets staged a recovery on optimism ahead of quarterly earnings later this week and going forward.

In economic news, the Labor Department said annual inflation rose slightly less than expected but saw a sharp monthly increase thanks to a spike in gasoline prices.

Crude oil prices moved higher on Tuesday, lifted by an upward revision in energy demand forecast by OPEC. West Texas Intermediate Crude oil futures for May ended higher by $0.48 or 0.8 percent at $60.18 a barrel.