China Stock Market May See Renewed Consolidation On Tuesday

(RTTNews) - The China stock market rebounded on Monday, one session after ending 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 above the 3,980-point plateau although it's likely to open in the red again on Tuesday.

The global forecast for the Asian markets is soft on renewed concerns over the conflict in the Middle East and the corresponding jump in crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished modestly higher on Monday as gains from the food, finance and energy sectors were capped by weakness from the technology stocks.

For the day, the index gained 34.12 points or 0.86 percent to finish at the daily high of 3,986.30 after trading as low as 3,926.50. The Shenzhen Composite Index rose 15.38 points or 0.60 percent to end at 2,565.55.

The lead from Wall Street is weak as the major averages opened firmly lower on Monday and stayed that way throughout the session.

The Dow dropped 374.09 points or 0.70 percent to finish at 53,185.90, while the NASDAQ sank 31.54 points or 0.12 percent to close at 26,370.89 and the S&P 500 lost 25.62 points or 0.33 percent to end at 7,686.14.

The weakness on Wall Street came on concerns about a re-escalation of the military conflict in the Middle East following a period of relative calm, contributing to a jump in crude oil prices.

Crude oil prices jumped on Monday as the U.S. recommenced attacks on Iran, stoking concerns of a broader re-escalation in the gulf. West Texas Intermediate crude for October delivery was up $2.24 or 2.69 percent at $85.64 per barrel.

The sharp increase in crude oil prices contributed to renewed worries about the outlook for inflation ahead of this month's Federal Reserve meeting. Treasury yields then moved higher on the day, with the yield on the benchmark ten-year note reaching its highest levels in over a year.