Lower Open Anticipated For China Stock Market

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(RTTNews) – The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had fallen more than 25 points or 0.8 percent. The Shanghai Composite Index now sits just beneath the 3,250-point plateau and it’s expected to open in the red again on Wednesday.

The global forecast for the Asian markets remains soft on increasing concerns over the Republican-manufactured U.S. debt ceiling confrontation. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The SCI finished sharply lower on Tuesday following losses from the financial shares, property stocks and resource companies.

For the day, the index stumbled 50.23 points or 1.52 percent to finish at the daily low of 3,246.24 after peaking at 3,298.23. The Shenzhen Composite Index dropped 20.24 points or 0.99 percent to end at 2,018.72.

Among the actives, Industrial and Commercial Bank of China tumbled 2.76 percent, while Bank of China retreated 3.12 percent, China Construction Bank declined 2.84 percent, China Merchants Bank slumped 1.75 percent, Bank of Communications skidded 1.37 percent, China Life Insurance plunged 4.13 percent, Jiangxi Copper stumbled 1.94 percent, Aluminum Corp of China (Chalco) tanked 3.39 percent, Yankuang Energy dropped 1.68 percent, PetroChina shed 1.87 percent, China Petroleum and Chemical (Sinopec) sank 1.42 percent, Huaneng Power plummeted 3.02 percent, China Shenhua Energy eased 0.23 percent, Gemdale lost 1.31 percent, Poly Developments fell 1.11 percent, China Vanke slid 1.02 percent and China Fortune Land dipped 0.44 percent.

The lead from Wall Street suggests consolidation as the major averages opened lower on Tuesday and spent much of the day hugging the line before slumping in the afternoon.

The Dow tumbled 231.07 points or 0.69 percent to finish at 33,055.51, while the NASDAQ sank 160.53 points or 1.26 percent to end at 12,560.25 and the S&P 500 dropped 47.05 points or 1.12 percent to close at 4,145.58.

The markets continue to be weighed by the debt ceiling negotiations. U.S. President Joe Biden and House Speaker Kevin McCarthy said they held productive talks but there was no agreement on how to raise the government’s $31.4 trillion debt ceiling.

In economic news, the S&P Global US Composite PMI accelerated to its fastest pace in more than a year, while the Commerce Department said new home sales surprised much higher to the upside.

Crude oil futures advanced on speculation that OPEC might consider another production cut next month, and on a warning from Saudi Arabia’s energy minister that oil prices will stop declining. West Texas Intermediate Crude oil futures for July rose $0.86 or 1.2 percent at $72.91 a barrel.