China Bourse Expected To Extend Losing Streak

(RTTNews) - The China stock market has finished lower in two straight sessions, sinking more than 40 points or 1.2 percent along the way. The Shanghai Composite Index now sits just above the 3,285-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets suggests consolidation, thanks to renewed concerns over the outlook for interest rates. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The SCI finished sharply lower on Tuesday following losses from the properties, gains from the oil companies and a mixed picture from the financials.

For the day, the index skidded 36.93 points or 1.11 percent to finish at 3,285.10 after trading between 3,284.41 and 3,342.86. The Shenzhen Composite Index slumped 43.43 points or 2.02 percent to end at 2,108.72.

Among the actives, Industrial and Commercial Bank of China advanced 0.92 percent, while Bank of China improved 0.91 percent, China Construction Bank collected 0.86 percent, China Merchants Bank skidded 1.19 percent, Bank of Communications climbed 1.00 percent, China Life Insurance retreated 1.50 percent, Jiangxi Copper sank 0.70 percent, Aluminum Corp of China (Chalco) added 0.53 percent, Yankuang Energy rallied 2.23 percent, PetroChina spiked 2.36 percent, China Petroleum and Chemical (Sinopec) soared 3.14 percent, Huaneng Power dropped 1.03 percent, China Shenhua Energy accelerated 2.52 percent, Gemdale tanked 2.26 percent, Poly Developments declined 1.49 percent and China Vanke tumbled 1.95 percent.

The lead from Wall Street is broadly negative as the major averages opened flat on Tuesday but quickly turned lower, finishing near daily lows.

The Dow plunged 574.98 points or 1.72 percent to finish at 32,856.46, while the NASDAQ sank 145.41 points or 1.25 percent to end at 11,530.33 and the S&P 500 dropped 62.05 points or 1.53 percent to close at 3,986.37.

The sell-off on Wall Street reflected a negative reaction to Federal Reserve Chair Jerome Powell's highly anticipated semiannual monetary policy testimony before the Senate Banking Committee.

Citing stubbornly elevated inflation and stronger than expected economic data, Powell told lawmakers the "ultimate level of interest rates is likely to be higher than previously anticipated."

Powell also said the Fed would be prepared to reaccelerate the pace of rate hikes and for a longer period if incoming data were to indicate that faster tightening is warranted.

Crude oil prices tumbled Tuesday on renewed uncertainty about energy demand, while a surging greenback also weighed on the commodity. West Texas Intermediate Crude oil futures for April slumped $2.88 or 3.6 percent at $77.58 a barrel.