China Shares May Take Further Damage On Wednesday

(RTTNews) - The China stock market on Tuesday wrote a finish to the three-day winning streak in which it had improved more than 75 points or 2 percent. The Shanghai Composite Index now sits just shy of the 3,860-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is negative on renewed ambiguity surrounding U.S. tariff policies. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The SCI finished modestly lower on Tuesday as losses from the properties were offset by gains from the financial sector.

For the day, the index slipped 17.40 points or 0.45 percent to finish at 3,858.13 after trading between 3,828.68 and 3,885.31. The Shenzhen Composite Index plunged 50.37 points or 2.04 percent to end at 2,414.46.

Among the actives, Industrial and Commercial Bank of China collected 2.57 percent, while Bank of China and Agricultural Bank of China both accelerated 1.99 percent, China Merchants Bank soared 3.48 percent, Bank of Communications rallied 1.95 percent, China Life Insurance eased 0.10 percent, Jiangxi Copper perked 0.14 percent, Aluminum Corp of China (Chalco) fell 0.25 percent, Yankuang Energy shed 0.61 percent, PetroChina surged 4.25 percent, China Petroleum and Chemical (Sinopec) jumped 1.93 percent, Huaneng Power advanced 0.94 percent, China Shenhua Energy added 0.69 percent, Gemdale declined 1.23 percent, Poly Developments dropped 0.89 percent and China Vanke retreated 1.32 percent.

The lead from Wall Street is weak as the major averages opened lower and remained in the red throughout the day, although off session lows.

The Dow dropped 249.07 points or 0.55 percent to finish at 45,295.81, while the NASDAQ sank 175.92 points or 0.82 percent to end at 21,279.63 and the S&P 500 lost 44.72 points or 0.69 percent to close at 6,415.54.

The early sell-off on Wall Street came amid renewed trade uncertainty after the U.S. Court of Appeals for the Federal Circuit ruled most of President Donald Trump's global tariffs are illegal.

Treasury yields surged in reaction to the ruling amid concerns the government may have to repay the billions of dollars already brought in through Trump's tariffs.

In U.S. economic news, the Institute for Supply Management released a report showing a slight increase by its reading on U.S. manufacturing activity in August, although the index still posted its sixth consecutive month of contraction.

Crude oil jumped on Tuesday on concerns about supply disruptions increased following strikes on Russian energy sites by Ukraine. West Texas Intermediate crude for October delivery was up $1.51 or 2.36 percent at $65.52 per barrel.