China Bourse May Spin Its Wheels On Tuesday

(RTTNews) - The China stock market has moved higher in three straight sessions, collecting almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now sits just above the 3,470-point plateau although the rally may stall on Tuesday.

The global forecast for the Asian markets is soft on renewed trade and tariff concerns. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished barely higher on Monday as gains from the properties were offset by weakness from the resource companies and a mixed picture from the financial sector.

For the day, the index perked 0.81 points or 0.02 percent to finish at 3,473.13 after trading between 3,462.79 and 3,474.80. The Shenzhen Composite Index dipped 1.25 points or 0.06 percent to end at 2,074.47.

Among the actives, Industrial and Commercial Bank of China dipped 0.26 percent, while Bank of China added 0.53 percent, Agricultural Bank of China improved 0.83 percent, China Merchants Bank collected 0.28 percent, Bank of Communications slumped 0.61 percent, China Life Insurance lost 0.56 percent, Jiangxi Copper dropped 0.89 percent, Aluminum Corp of China (Chalco) tumbled 1.68 percent, Yankuang Energy rose 0.33 percent, PetroChina sank 0.81 percent, China Petroleum and Chemical (Sinopec) shed 0.53 percent, Huaneng Power jumped 1.76 percent, China Shenhua Energy tanked 2.81 percent, Gemdale surged 4.86 percent, Poly Developments climbed 1.12 percent and China Vanke strengthened 1.24 percent.

The lead from Wall Street is negative as the major averages opened under water and trended steadily lower as the day progressed, ending near session lows.

The Dow tumbled 422.17 points or 0.94 percent to finish at 44,406.36, while the NASDAQ sank 188.59 points or 0.92 percent to end at 20,412.52 and the S&P 500 dropped 49.37 points or 0.79 percent to close at 6,229.98.

The early weakness on Wall Street partly reflect profit taking following the strong upward move seen over the past few sessions.

Further selling pressure was generated in afternoon trading after President Donald Trump shared screen shots on Truth Social of letter sent to various world leaders about new tariffs set to be imposed on August 1st.

Imports from Japan, South Korea, Malaysia and Kazakhstan are now set to face 25 percent tariffs, according to the letters Trump posted.

Crude oil prices edged higher Monday, shrugging off oversupply concerns triggered by OPEC's decision to accelerate its production increase starting in August. West Texas Intermediate crude for August delivery rose $0.93 to settle at $67.93 per barrel.