China Stock Market May Test Resistance At 3,100 Points

(RTTNews) - The China stock market on Tuesday ended the four-day losing streak in which it had dropped more than 70 points or 2.4 percent. The Shanghai Composite Index now sits just above the 3,090-point plateau and it's likely to remain in that neighborhood again on Wednesday.

The global forecast for the Asian markets is mixed to higher, with bargain hunting expected - especially among the oil and technology stocks. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to follow the latter lead.

The SCI finished sharply higher on Tuesday following gains from the properties and resource stocks, while the financials were mixed.

For the day, the index jumped 42.64 points or 1.40 percent to finish at 3,093.86 after trading between 3,048.36 and 3,094.04. The Shenzhen Composite Index spiked 40.40 points or 2.07 percent to end at 1,989.40.

Among the actives, Industrial and Commercial Bank of China dipped 0.23 percent, while Bank of China fell 0.33 percent, China Construction Bank eased 0.18 percent, China Merchants Bank was down 0.15 percent, Bank of Communications slid 0.22 percent, China Life Insurance collected 0.91 percent, Jiangxi Copper rose 0.39 percent, Aluminum Corp of China (Chalco) advanced 0.97 percent, Yankuang Energy skidded 1.15 percent, PetroChina weakened 0.20 percent, China Petroleum and Chemical (Sinopec) perked 0.23 percent, Huaneng Power sank 0.25 percent, China Shenhua Energy was up 0.13 percent, Gemdale surged 2.40 percent, Poly Developments slumped 0.11 percent, China Vanke gained 0.92 percent, China Fortune Land jumped 1.56 percent and Beijing Capital Development spiked 2.08 percent.

The lead from Wall Street offers little clarity as the major averages shook off early strength, sinking as the day progressed with only the NASDAQ finishing in the green.

The Dow dropped 125.82 points or 0.43 percent to finish at 29,134.99, while the NASDAQ added 26.58 points or 0.25 percent to end at 10,829.50 and the S&P 500 slipped7.75 points or 0.21 percent to close at 3,647.29.

Bargain hunting contributed to the early rebound on Wall Street, as traders picked up stocks at reduced levels following recent weakness. Buying interest waned over the course of the morning, however, as concerns about higher interest rates and the outlook for the global economy continued to weigh on the markets.

The subsequent pullback by stocks came as treasury yields once again surged after an initial move to the downside, with the yield on the benchmark 10-year note reaching its highest levels in over 12 years.

In economic news, the Commerce Department noted a modest decrease in new orders for U.S. manufactured durable goods in August, as well as a rebound in new home sales last month. Also, the Conference Board saw a bigger than expected improvement in consumer confidence this month.

Crude oil prices climbed higher on Tuesday on reports producers have slowed down production in the U.S. Gulf of Mexico ahead of Hurricane Ian. West Texas Intermediate Crude oil futures for November ended higher by $1.79 or 2.3 percent at $78.50 a barrel.