China Stock Market May Run Out Of Steam On Tuesday

(RTTNews) - The China stock market has climbed higher in back-to-back sessions, advancing more than 40 points or 1.3 percent along the way. The Shanghai Composite Index now rests just beneath the 3,070-point plateau although it may spin its wheels on Tuesday.

The global forecast for the Asian markets is mixed to lower ahead of inflation data that may affect the outlook for interest rates. The European and U.S. markets were mixed and little changed and the Asian bourses figure to follow suit.

The SCI finished modestly higher on Monday as losses from the financials, resource stocks and energy companies were offset by gains from the property sector.

For the day, the index gained 22.44 points or 0.74 percent to finish at the daily high of 3,068.46 after moving as low as 3,035.45. The Shenzhen Composite Index rallied 36.47 points or 2.12 percent to end at 1,756.18.

Among the actives, Industrial and Commercial Bank of China fell 0.37 percent, while Bank of China slumped 0.88 percent, China Construction Bank lost 0.56 percent, China Merchants Bank shed 0.60 percent, Bank of Communications dipped 0.16 percent, China Life Insurance climbed 1.07 percent, Jiangxi Copper skidded 1.00 percent, Aluminum Corp of China (Chalco) sank 0.75 percent, Yankuang Energy plummeted 3.42 percent, PetroChina tumbled 1.96 percent, Huaneng Power dropped 0.85 percent, China Shenhua Energy plunged 2.64 percent, Gemdale soared 3.08 percent, Poly Developments surged 4.76 percent and China Vanke rallied 3.05 percent.

The lead from Wall Street is uninspired as the major averages opened lower on Monday and largely stayed that way, although the Dow snuck barely above the line late in the day to finish slightly higher.

The Dow added 46.97 points or 0.12 percent to finish at 38,769.66, while the NASDAQ slumped 65.84 points or 0.41 percent to close at 16,019.27 and the S&P 500 dipped 5.75 points or 0.11 percent to end at 5,117.94.

The weakness on Wall Street came amid uncertainty about the outlook for interest rates ahead of the release of key inflation data later today, when the Labor Department is scheduled to release its closely watched report on consumer price inflation for February.

The inflation data could have a significant impact on the outlook for interest rates, with Federal Reserve officials saying they need "greater confidence" that inflation is slowing before they consider cutting rates.

While the Fed is widely expected to leave rates unchanged at its monetary policy meeting next week, the data could impact expectations regarding when the central bank will eventually lower rates.

Oil futures settled lower on Monday amid concerns about the outlook for demand from China and on caution ahead key U.S. consumer price inflation data. West Texas Intermediate Crude oil futures for April ended down $0.08 or 0.1 percent at $77.93 a barrel, settling lower for the third consecutive session.