China Shares May See Mild Selling Pressure On Wednesday

(RTTNews) – The China stock market on Tuesday snapped the two-day winning streak in which it had collected more than 15 points or 0.4 percent. The Shanghai Composite Index now sits just above the 3,580-point plateau and it may extend its losses on Wednesday.

The global forecast for the Asian markets offers little guidance on a lack of catalysts. The European and U.S. markets were mixed and little changed and the Asian bourses are expected to open in similar fashion.

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

For the day, the index shed 19.43 points or 0.54 percent to finish at 3,580.11 after trading between 3,563.25 and 3,621.52. The Shenzhen Composite Index dropped 20.77 points or 0.86 percent to end at 2,393.13.

Among the actives, Industrial and Commercial Bank of China collected 0.58 percent, while Bank of China shed 0.32 percent, China Construction Bank added 0.44 percent, China Merchants Bank lost 0.53 percent, Bank of Communications rose 0.20 percent, China Life Insurance gained 0.45 percent, Jiangxi Copper plunged 2.94 percent, Aluminum Corp of China (Chalco) tumbled 1.93 percent, Yanzhou Coal dropped 0.82 percent, PetroChina fell 0.63 percent, China Petroleum and Chemical (Sinopec) sank 0.66 percent, Baoshan Iron jumped 1.94 percent, Gemdale slid 0.37 percent, China Vanke increased 0.46 percent, Beijing Capital Development was up 0.35 percent and Poly Developments was unchanged.

The lead from Wall Street is unclear as stocks spent Tuesday’s session bouncing back and forth across the unchanged line, finally settling mixed and little changed.

The Dow fell 30.42 points or 0.09 percent to finish at 34,599.82, while the NASDAQ gained 43.19 points or 0.31 percent to end at 13,924.91 and the S&P 500 rose 0.74 points or 0.02 percent to close at 4,227.26.

Despite optimism about economic growth amid the vaccine rollout, investors were reluctant to build up positions ahead of upcoming inflation data and concerns the Federal Reserve may start discussions on tapering its asset buying program.

Inflation data for May is due out on Thursday and may provide some cues on policy from the Federal Reserve – which is scheduled to meet next week.

Crude oil futures spiked on Tuesday on hopes that demand will continue to rise following reports that the Pfizer and AstraZeneca Covid vaccines are effective against the Covid Delta variant. West Texas Intermediate Crude oil futures for July ended up by $0.82 or 1.2 percent at $70.05 a barrel, the highest settlement since October 2018.