Hong Kong Stock Market May See Continued Consolidation

(RTTNews) - The Hong Kong stock market has moved lower in consecutive trading days, sliding more than 330 points or 1.3 percent along the way. The Hang Seg Index now sits just beneath the 25,275-point plateau and it's likely to extend its losses on Thursday.

The global forecast for the Asian markets is negative on surging crude oil prices and the resulting inflation concerns. The European and U.S. markets were firmly in the red and the Asian markets are expected to open in similar fashion.

The Hang Seng finished slightly lower on Wednesday as losses among the property, technology and automobile companies were mitigated by support from the financials and utilities.

For the day, the index fell 42.22 points or 0.17 percent to finish at 25,274.96 after trading between 25,161.67 and 25,335.52.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained under water throughout the trading day, ending near session lows.

The Dow dropped 405.41 points or 0.77 percent to finish at 52,380.66, while the NASDAQ shed 168.07 points or 0.64 percent to end at 26,253.34 and the S&P 500 fell 37.16 points or 0.48 percent to close at 7,636.36.

The continued weakness on Wall Street came amid an extended surge by the price of crude oil, with international benchmark brent crude futures topping $100 a barrel for the first time since July.

The sharp increase in crude oil prices has led to renewed concerns about the outlook for inflation ahead of the Federal Reserve's monetary policy meeting next week.

Crude oil prices surged on Wednesday as the U.S. and Iran continued to trade attacks, dashing hopes for the reopening of the Strait of Hormuz and renewing inflation concerns. West Texas Intermediate crude for October delivery was up $2.98 or 3.20 percent at $96.01 per barrel.