Renewed Selling Pressure Expected For China Stock Market

(RTTNews) - The China stock market on Tuesday wrote a finish to the three-day slide in which it had stumbled more than 80 points or 2.7 percent. The Shanghai Composite Index now rests just above the 2,890-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets is negative amid concerns about the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets are expected to split the difference.

The SCI finished slightly higher on Tuesday following gains from the properties and energy companies and mixed performances from the financials and resource stocks.

For the day, the index rose 5.71 points or 0.20 percent to finish at 2,893.25 after trading between 2,878.41 and 2,900.73. The Shenzhen Composite Index added 5.95 points or 0.34 percent to end at 1,746.03.

Among the actives, China Merchants Bank perked 0.14 percent, while Bank of Communications dipped 0.17 percent, China Life Insurance collected 0.46 percent, Jiangxi Copper rallied 2.22 percent, Aluminum Corp of China (Chalco) shed 0.36 percent, Yankuang Energy soared 2.98 percent, PetroChina eased 0.13 percent, China Petroleum and Chemical (Sinopec) rose 0.18 percent, Huaneng Power climbed 1.18 percent, China Shenhua Energy improved 1.19 percent, Gemdale strengthened 1.22 percent, Poly Developments added 0.66 percent, China Vanke gained 0.61 percent and Industrial and Commercial Bank of China, Bank of China and China Construction Bank were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Tuesday and largely stayed under water, although the NASDAQ managed to break barely into the green.

The Dow shed 157.85 points or 0.42 percent to finish at 37,525.16, while the NASDAQ rose 13.94 points or 0.09 percent to close at 14,857.71 and the S&P 500 slipped 7.04 points or 0.15 percent to end at 4,756.50.

The early weakness on Wall Street came as some traders looked to cash in on Monday's strong gains amid lingering uncertainty about the outlook for interest rates.

While the Federal Reserve is widely expected to leave interest rates unchanged later this month, traders have recently become increasingly skeptical about whether the central bank will cut rates in March.

In economic news, the Commerce Department released a report showing the U.S. trade deficit unexpectedly shrank in November.

Oil prices climbed higher on Tuesday as rising geopolitical risks raised concerns about possible supply and trade disruptions. West Texas Intermediate Crude oil futures for February settled higher by $1.47 at $72.24 a barrel.