China Stock Market May See Positive Bounce

(RTTNews) - The China stock market has moved lower in back-to-back sessions, slumping more than 250 points or 7.4 percent along the way. The Shanghai Composite Index now sits just beneath the 3,100-point plateau although it may move back to the upside on Tuesday.

The global forecast for the Asian markets suggests bargain hunting after a couple of sessions of extremely heavy losses, The European markets were sharply lower and the U.S. bourses were mixed but the Asian markets are due to tick higher.

The SCI finished sharply lower on Monday with damage across the board thanks to tariff-driven fears, especially among the financial shares, resource stocks and properties.

For the day, the index stumbled 245.43 points or 7.34 percent to finish at 3,096.58 after trading between 3,040.69 and 3,217.78. The Shenzhen Composite Index plummeted 215.01 points or 10.79 percent to end at 1,777.37.

Among the actives, Industrial and Commercial Bank of China slid 1.89 percent, while Bank of China sank 3.89 percent, Agricultural Bank of China fell 3.64 percent, China Merchants Bank lost 4.27 percent, Bank of Communications shed 4.95 percent, China Life Insurance slumped 6.72 percent, Jiangxi Copper dropped 9.98 percent, Aluminum Corp of China (Chalco) surrendered 10.04 percent, Yankuang Energy cratered 8.48 percent, PetroChina plummeted 9.83 percent, China Petroleum and Chemical (Sinopec) crashed 6.92 percent, Huaneng Power weakened 4.37 percent, China Shenhua Energy declined 4.16 percent, Gemdale plunged 8.78 percent, Poly Developments retreated 5.48 percent and China Vanke stumbled 7.56 percent.

The lead from Wall Street is murky as the major averages opened lower on Monday but then hugged the line on both sides before finishing mixed and little changed.

The Dow tumbled 349.26 points or 0.91 percent to finish at 37,965.60, while the NASDAQ added 15.48 points or 0.10 percent to close at 15,603.26 and the S&P 500 fell 11.83 points or 0.23 percent to end at 5,062.25.

Stocks initially extended the sell-off seen over the two previous sessions amid ongoing concerns about the impact of President Donald Trump's new tariffs and retaliatory moves by U.S. trade partners.

Adding to worries about a global trade war, Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

Selling pressure waned shortly after the start of trading, however, leading some traders to pick up stocks at reduced levels after the major averages hit their lowest intraday levels in over a year.

Crude oil prices tumbled again on Monday, extending the nosedive seen over the two previous sessions over tariff concerns. After plummeting nearly $10 a barrel last Thursday and Friday, West Texas Intermediate crude for May delivery dropped $1.29 or 2.1 percent to $60.70 a barrel.