China Stock Market May Extend Losing Streak

(RTTNews) - The China stock market has tracked lower in two straight sessions, slumping almost 30 points or 1 percent along the way. The Shanghai Composite Index now sits just beneath the 3,050-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets suggests consolidation ahead of key inflation data and on U.S. political uncertainty. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The SCI finished modestly lower on Wednesday as losses from the insurance, oil and energy stocks were mitigated by support from the financials and properties.

For the day, the index shed 16.33 points or 0.53 percent to finish at 3,048.17 after trading between 3,046.19 and 3,073.92. The Shenzhen Composite Index fell 8.30 points or 0.41 percent to end at 2,011.51.

Among the actives, Industrial and Commercial Bank of China rose 0.24 percent, while China Construction Bank collected 0.38 percent, China Merchants Bank perked 0.10 percent, Bank of Communications was up 0.22 percent, China Life Insurance retreated 1.49 percent, Jiangxi Copper increased 0.18 percent, Yankuang Energy tanked 2.29 percent, PetroChina sank 0.79 percent, Huaneng Power tumbled 1.82 percent, China Shenhua Energy declined 1.67 percent, Gemdale skyrocketed 6.95 percent, Poly Developments rallied 2.50 percent, China Vanke spiked 2.03 percent, China Fortune Land surged 4.80 percent, Beijing Capital Development soared 4.27 percent and Bank of China, Aluminum Corp of China (Chalco), China Petroleum and Chemical (Sinopec) and Anhui Conch Cement were unchanged.

The lead from Wall Street is broadly negative as the major averages opened modestly lower on Wednesday but saw the losses accelerate as the day progressed, ending at session lows.

The Dow plummeted 646.89 points or 1.95 percent to finish at 32,513.94, while the NASDAQ plunged 263.03 points or 2.48 percent to close at 10,353.17 and the S&P 500 sank 79.54 points or 2.08 percent to end at 3,748.57.

The sharply pullback on Wall Street came as traders cashed in on recent strength in the markets amid lingering uncertainty about the results of the U.S. midterm elections as control of both houses of Congress remains unclear.

Traders may also be moving money out of stocks ahead today's highly anticipated report on consumer price inflation, which could have a significant impact on the outlook for interest rates.

Crude oil prices tumbled Wednesday, weighed down by a jump in crude stockpiles, concerns about the outlook for energy demand and a stronger U.S. dollar. West Texas Intermediate Crude oil futures for December ended lower by $3.08 or 3.5 percent at $85.83 a barrel, falling for the third consecutive session.

Closer to home, China will on Thursday release October data for new yuan loans. New loans are forecast at CNY800 billion, down from CNY2.470 trillion in September. The M2 money supply is expected to ease to 12 percent on year from 12.1 percent in the previous month, while outstanding loan growth is seen steady at 11.2 percent.