China Stock Market May Halt Losing Streak

(RTTNews) - The China stock market has moved lower in back-to-back sessions, slumping more than 70 points or 2.3 percent along the way. The Shanghai Composite Index now sits just above the 3,090-point plateau although it may stop the bleeding on Tuesday.

The global forecast for the Asian markets is cautiously optimistic after heavy selling in the previous week. The European and U.S. markets finished mostly higher and the Asian bourses are expected to follow suit.

The SCI finished sharply lower on Monday following losses from the financial shares, property stocks and resource companies.

For the day, the index stumbled 38.98 points or 1.24 percent to finish at the daily low of 3,092.98 after moving as high as 3,134.96. The Shenzhen Composite Index dropped 19.42 points or 1.00 percent to end at 1,930.83.

Among the actives, Industrial and Commercial Bank of China skidded 1.08 percent, while Bank of China retreated 1.32 percent, China Construction Bank sank 0.67 percent, China Merchants Bank tanked 2.35 percent, Bank of Communications tumbled 1.97 percent, China Life Insurance plummeted 4.32 percent, Jiangxi Copper shed 0.64 percent, Aluminum Corp of China (Chalco) dropped 1.01 percent, Yankuang Energy and Poly Developments both surrendered 1.84 percent, PetroChina stumbled 1.56 percent, China Petroleum and Chemical (Sinopec) lost 0.49 percent, Huaneng Power declined 1.79 percent, China Shenhua Energy slumped 1.24 percent, Gemdale weakened 1.41 percent and China Vanke dove 2.31 percent.

The lead from Wall Street is mostly positive as the major averages opened mixed on Monday, slumped midday but recovered late, although the Dow still finished in the red.

The Dow shed 36.97 points or 0.11 percent to finish at 34,463.69, while the NASDAQ jumped 206.81 points or 1.56 percent to end at 13,497.59 and the S&P 500 gained 30.06 points or 0.69 percent to close at 4,399.77.

The spike by the NASDAQ came as traders picked up tech stocks at reduced levels following recent weakness, with the index bouncing off its lowest closing level in two months.

Cybersecurity company Palo Alto Networks (PANW) helped to fuel the tech rally after reporting standout gains, while Johnson & Johnson (JNJ) weighed on the Dow.

Traders continued to look ahead to the economic summit in Jackson Hole, Wyoming, where major central bankers are congregating later in the week to deliberate on monetary policy.

Crude oil prices fell on Monday, weighed down by concerns about the outlook for energy demand, although the extension of production cuts by OPEC helped limit the downside. West Texas Intermediate Crude oil futures for September fell $0.53 or 0.7 percent at $80.72 a barrel. WTI Crude futures for October settled at $80.12 a barrel, down $0.54 or 0.7 percent.