Hong Kong Shares May Run Out Of Steam On Tuesday

(RTTNews) - The Hong Kong stock market has finished higher in back-to-back sessions, collecting more than 400 points or 1.6 percent in that span. The Hang Seng Index now sits just beneath the 25,940-point plateau although it may open under water on Tuesday. The global forecast for the Asian markets is weak on continuing concerns over the conflict in the Middle East and the resulting spike in crude oil prices. The European markets were mixed and flat and the U.S. bourses were slightly soft and the Asian markets figure to split the difference.

The Hang Seng finished sharply higher on Monday following gains from the financial shares, technology stocks and properties, although the insurance companies were soft. For the day, the index climbed 269.46 points or 1.05 percent to finish at 25,937.49 after trading between 25,720.46 and 25,957.75.

The lead from Wall Street is soft as the major averages hugged the line for much of the day before fading midday and ending in the red.

The choppy trading on Wall Street came as traders look ahead to key U.S. inflation data in the coming days.

The Labor Department is scheduled to release reports on consumer and producer inflation on Wednesday and Thursday, respectively. On the heels of last Friday's weak jobs report, the data could impact the outlook for interest rates.

Traders are also keeping an eye on developments in the Middle East, where Iran and Oman are reportedly close on a deal regarding the Strait or Hormuz but Tehran has indicated it is resisting talks with the U.S.

Crude oil prices skyrocketed as a result on Monday as expectations of an early reopening of the Strait of Hormuz began to fade, increasing concerns of military re-escalation. West Texas Intermediate crude for September delivery was up $4.07 or 5.21 percent at $82.25 per barrel.