Soft Start Anticipated For China Stock Market

(RTTNews) – The China stock market has moved lower in two straight sessions, sinking almost 45 points or 1.2 percent along the way. The Shanghai Composite Index now rests just above the 3,530-point plateau and it’s likely in line for continued consolidation on Tuesday.

The global forecast for the largely overbought Asian markets is negative, with profit taking expected to limit any upside. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

The SCI finished sharply lower on Monday following heavy profit taking among the resource stocks and mixed performances from the financials and properties.

For the day, the index dropped 38.61 points or 1.08 percent to finish at 3,531.50 after trading between 3,516.99 and 3,597.70. The Shenzhen Composite Index tumbled 43.64 points or 1.80 percent to end at 2,375.86.

Among the actives, Industrial and Commercial Bank of China fell 0.20 percent, while Bank of China shed 0.63 percent, China Construction Bank jumped 1.74 percent, China Merchants Bank spiked 3.91 percent, Bank of Communications shed 0.44 percent, China Life Insurance tanked 3.28 percent, Jiangxi Copper cratered 7.00 percent, Aluminum Corp of China (Chalco) plummeted 8.40 percent, Yanzhou Coal surrendered 3.88 percent, PetroChina tumbled 1.63 percent, China Petroleum and Chemical (Sinopec) plunged 3.28 percent, China Shenhua Energy tumbled 3.06 percent, Gemdale sank 2.05 percent, Poly Developments dropped 0.99 percent, China Vanke rallied 1.50 percent and Beijing Capital Development gained 0.52 percent.

The lead from Wall Street is soft as stocks opened in the red on Monday, made back a bit of ground but still ended firmly in the red.

The Dow skidded 89.28 points or 0.29 percent to finish at 31,008.69, while the NASDAQ tumbled 165.54 points or 1.25 percent to end at 13,036.43 and the S&P 500 lost 25.07 points or 0.66 percent to close at 3,799.61.

Profit taking contributed to the initial weakness on Wall Street after the major averages climbed to new record closing highs last Friday as traders cashed in on recent gains.

Concerns about developments in Washington also weighed on stocks as Democrats prepare another attempt to remove President Donald Trump from office. House Democrats are preparing to once again impeach Trump even though the president has less than two weeks left in his term.

Crude oil futures settled flat on Monday as rising coronavirus cases and tighter lockdown measures across the world raised concerns about outlook for energy demand. West Texas Intermediate Crude oil futures for February settled at $52.25 a barrel, up 1 cent from the previous close.

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