China Stock Market May Extend Tuesday's Losses

(RTTNews) - The China stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had jumped more than 75 points or 1.9 percent. The Shanghai Composite Index now sits just beneath the 3,980-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is weak on rising hostilities in the Middle East and the resulting spike in crude oil prices. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The SCI finished slightly lower on Tuesday as losses from the technology and property stocks were mitigated by support from the financial sector.

For the day, the index dipped 6.41 points or 0.16 percent to finish at 3,979.89 after trading between 3,976.47 and 3,995.18. The Shenzhen Composite Index shed 17.18 points or 0.67 percent to end at 2,548.37.

The lead from Wall Street is negative as the major averages opened lower on Tuesday and remained firmly under water throughout the trading day.

The Dow dropped 419.02 points or 0.79 percent to finish at 52,766.88, while the NASDAQ sank 271.12 points or 1.03 percent to end at 26,099.77 and the S&P 500 lost 54.67 points or 0.71 percent to close at 7,631.47.

The continued weakness on Wall Street came after U.S. Central Command announced a fresh wave of attacks against Iran, striking Islamic Revolutionary Guard Corps targets.

Crude oil prices have surged in reaction to the latest attack, renewing concerns about inflation and the outlook for interest rates.

Crude oil prices surged on Tuesday after the U.S. launched another fresh wave of attacks on Iran following the recent exchange of strikes over the weekend. West Texas Intermediate crude for October delivery was up $4.27 or 4.98 percent at $90.03 per barrel.