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China Stock Market May Take Further Damage On Wednesday

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The China stock market on Tuesday snapped the two-day winning streak in which it had climbed almost 35 points or 1 percent. The Shanghai Composite Index now rests just shy of the 3,380-point plateau and it's tipped to open under pressure again on Wednesday.

The global forecast for the Asian markets is soft as traders take a wait-and-see attitude regarding stimulus and coronavirus vaccines. The European markets were mixed and the U.S. bourses slightly lower and the Asian markets figure to split the difference.

The SCI finished modestly lower on Tuesday as heavy damage among the resource stocks was mitigated by support from the financials and properties.

For the day, the index shed 18.25 points or 0.54 percent to finish at 3,379.04 after trading between 3,376.09 and 3,407.09. The Shenzhen Composite Index sank 14.63 points or 0.64 percent to end at 2,258.37.

Among the actives, Industrial and Commercial Bank of China rose 0.20 percent, while China Construction Bank was up 0.16 percent, China Merchants Bank shed 0.49 percent, Bank of Communications collected 0.22 percent, China Life Insurance advanced 0.83 percent, Jiangxi Copper plummeted 5.28 percent, Aluminum Corp of China (Chalco) plunged 4.84 percent, Yanzhou Coal tanked 4.75 percent, PetroChina fell 0.24 percent, China Petroleum and Chemical (Sinopec) gained 0.75 percent, China Shenhua Energy tumbled 2.70 percent, Gemdale spiked 1.89 percent, Poly Developments perked 0.64 percent, China Vanke improved 0.35 percent and Bank of China and China Minsheng Bank were unchanged.

The lead from Wall Street is mildly negative as stocks failed to sustain an initial move to the upside and moved modestly lower over the course of the trading session on Tuesday.

The Dow shed 68.30 points or 0.22 percent to finish at 30,335.67, while the NASDAQ sank 49.20 points or 0.38 percent to end at 12,850.22 and the S&P 500 fell 8.32 points or 0.22 percent to close at 3,727.04.

Stocks initially benefited from window dressing, as some fund managers looked to further boost their portfolios going into the end of the year. The initial advance lifted the major averages to new record intraday highs, although buying interest waned shortly after the start of trading.

Traders also kept an eye on developments in Washington after President Donald Trump signed a coronavirus relief and government spending bill over the weekend.

Trump called for the direct payments included in the bill to be increased to $2,000 from $600, and the House voted Monday to approve a measure increasing the size of the stimulus checks. However, Senate Majority Leader Mitch McConnell, R-Ken., blocked an effort by Senate Minority Leader Chuck Schumer, D-N.Y., to unanimously approve the House bill.

Crude oil prices moved higher on Tuesday amid hopes energy demand will pick up if U.S. policymakers decide to provide additional stimulus to boost economic growth. West Texas Intermediate Crude oil futures for February ended higher by $0.38 or 0.8 percent at $48.00 a barrel.

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