China Stock Market Tipped To Open Under Water

(RTTNews) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had jumped almost 110 points or 2.7 percent. The Shanghai Composite Index now sit just above the 4,160-point plateau and it's likely to remain rangebound on Tuesday.

The global forecast for the Asian markets is mixed to lower amid weakness from technology shares and concerns about the outlook for interest rates. The European and U.S. markets were mixed to lower and the Asian bourses figure to also open to the downside.

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

For the day, the index jumped 72.62 points or 1.78 percent to finish at 4,163.10 after trading between 4,070.17 and 4,164.42. The Shenzhen Composite Index climbed 48.45 points or 1.70 percent to end at 2,901.82.

Among the actives, Industrial and Commercial Bank of China gained 0.56 percent, while Bank of China spiked 2.77 percent, Agricultural Bank of China collected 0.47 percent, China Merchants Bank and Huaneng Power both climbed 1.05 percent, Bank of Communications perked 0.15 percent, China Life Insurance surged 8.13 percent, Jiangxi Copper accelerated 2.91 percent, Aluminum Corp of China (Chalco) soared 5.12 percent, Yankuang Energy rallied 2.37 percent, PetroChina advanced 1.04 percent, China Petroleum and Chemical (Sinopec) vaulted 1.27 percent, China Shenhua Energy added 0.61 percent, Gemdale improved 0.86 percent and Poly Developments and China Vanke both strengthened 1.63 percent

The lead from Wall Street is weak as the major averages opened slightly higher but quickly headed south before finishing mixed.

The Dow climbed 148.01 points or 0.29 percent to finish at 51,712.71, while the NASDAQ tumbled 351.33 points or 1.32 percent to close at 26,166.60 and the S&P 500 sank 27.79 points or 0.37 percent to end at 7,472.79.

The slump by the NASDAQ came amid weakness among technology stocks, with shares of SpaceX (SPCX) plummeting by 16.4 percent. An increase by treasury yields weighed on tech stocks, as the yield on the two-year note reaches its highest levels in over a year.

Concerns about the outlook for interest rates drove yields higher ahead of the release of key inflation data later in the week.

Traders seem worried that an acceleration in the pace of inflation as a result of President Donald Trump's war with Iran could lead the Federal Reserve to raise interest rates later this year.

Crude oil prices plunged on Monday even though the Iranian military says it has again closed off the Strait of Hormuz, although there are reports of commercial vessels are operating freely in the strait. West Texas Intermediate crude for July delivery was down $1.63 or 2.13 percent at $74.97 per barrel.