China Stock Market Expected To Halt Losing Streak

(RTTNews) - The China stock market has finished lower in two straight sessions, although it has given up just 5 points or 0.2 percent in that span. The Shanghai Composite Index now rests just above the 3,275-point plateau although it's due for support on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, shaking off concerns over the health of the Chinese economy. The European and U.S. markets managed some mild upside and the Asian bourses figure to open in similar fashion.

The SCI finished slightly lower on Monday as losses from the financials, properties and resource stocks were mitigated by strong support from the energy companies.

For the day, the index eased 0.80 points or 0.02 percent to finish at 3,276.09 after trading between 3,261.82 and 3,286.89. The Shenzhen Composite Index gained 10.37 points or 0.47 percent to end at 2,217.44. Among the actives, Industrial and Commercial Bank of China lost 0.46 percent, while Bank of China shed 0.33 percent, China Construction Bank sank 0.72 percent, China Merchants Bank tumbled 1.86 percent, Bank of Communications fell 0.43 percent, China Life Insurance tanked 2.75 percent, Jiangxi Copper slid 0.29 percent, Aluminum Corp of China (Chalco) skidded 1.07 percent, Yankuang Energy surged 3.47 percent, PetroChina dropped 0.95 percent, China Petroleum and Chemical (Sinopec) eased 0.24 percent, Huaneng Power soared 2.91 percent, China Shenhua Energy advanced 0.97 percent, Gemdale slumped 0.68 percent, Poly Developments improved 0.58 percent, China Vanke declined 0.55 percent and China Fortune Land retreated 1.35 percent.

The lead from Wall Street is positive as the major averages shook off early weakness on Monday, broke into the green midway into the session and finished near daily highs.

The Dow jumped 151.39 points or 0.45 percent to finish at 33,912.44, while the NASDAQ advanced 80.87 points or 0.62 percent to close at 13,128.05 and the S&P 500 rose 16.99 points or 0.40 percent to end at 4,297.14.

The lower open on Wall Street came on lingering concerns about the global economy following the release of weak Chinese data and a surprise interest rate cut by China's central bank.

In U.S. economic news, the New York Federal Reserve reported an unexpected contraction in regional manufacturing activity in August. Also, the National Association of Home Builders noted continued deterioration in U.S. homebuilder confidence in August.

Crude oil prices tumbled Monday on worries about energy demand after data showed slower than expected growth of the Chinese economy in July. The lowering of the oil demand forecast for 2022 by OPEC also weighed on prices. West Texas Intermediate Crude oil futures for September dropped $2.68 or 2.9 percent at $89.41 a barrel.