China Shares May Turn Lower Again On Wednesday

(RTTNews) - The China stock market on Tuesday snapped the three-day losing streak in which it had slumped more than 120 points or 4.1 percent. The Shanghai Composite Index now sits just above the 3,830-point plateau although it may head south again on Wednesday.

The global forecast for the Asian markets is flat to lower ahead of key U.S. inflation data. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The SCI finished slightly higher on Tuesday as gains from the resource, agricultural and utility companies were offset by weakness from the technology stocks.

For the day, the index rose 6.83 points or 0.18 percent to finish at 3,830.45 after trading between 3,810.81 and 3,843.84. The Shenzhen Composite Index added 9.90 points or 0.41 percent to end at 2,410.04.

The lead from Wall Street remains weak as the major averages opened lower on Tuesday and largely stayed that way throughout the trading session, although ending well off daily lows.

The Dow dropped 131.59 points or 0.26 percent to finish at 51,359.92, while the NASDAQ dipped 22.84 points or 0.09 percent to close at 26,797.54 and the S&P 500 fell 12.85 points or 0.17 percent to end at 7,670.84.

The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of closely watched inflation data later today. The data could have a significant impact on the outlook for interest rates ahead of the Federal Reserve's next monetary policy meeting late next month.

Crude oil prices could not hold early gains and turned significantly lower Tuesday on reports that crude oil exports from Saudi Arabia's Red Sea ports are recovering from an attack on a key pipeline earlier this month. West Texas Intermediate crude for November delivery was down $2.90 or 3.1 percent to $89.70 a barrel.

Despite the pullback by the price of crude oil, treasury yields turned higher over the course of the session, extending a recent upward trend.

On the U.S. economic front, the Conference Board noted unexpected deterioration in U.S. consumer confidence in September.

Closer to home, China will see September results for the manufacturing, non-manufacturing and composite PMIs from the National Bureau of Statistics later this morning; in August, their scores were 49.8, 49.0 and 49.5, respectively. China also will see August results for the manufacturing and services indexes from Caixin; they were at 51.5 and 51.4, respectively, in the previous month.