Renewed Selling Pressure Likely For China Stock Market

(RTTNews) - The China stock market on Tuesday wrote a finish to the three-day slide in which it had stumbled almost 110 points or 2.7 percent. The Shanghai Composite Index now sits just beneath the 2,970-point plateau although it's expected to turn lower again on Wednesday.

The global forecast for the Asian markets is mixed to lower ahead of the Federal Reserve's monetary policy announcement later today. The European markets were up and the U.S. bourses were down, and the Asian markets are tipped to follow the latter lead.

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

For the day, the index soared 75.72 points or 2.62 percent to finish at the daily high of 2,969.20 after moving as low as 2,896.76. The Shenzhen Composite Index spiked 55.94 points or 2.97 percent to end at 1,942.36.

Among the actives, Industrial and Commercial Bank of China retreated 1.69 percent, while Bank of China rose 0.33 percent, China Construction Bank dropped 0.94 percent, China Merchants Bank soared 5.11 percent, Bank of Communications collected 0.67 percent, China Life Insurance surged 5.45 percent, Jiangxi Copper rallied 2.21 percent, Aluminum Corp of China (Chalco) spiked 2.85 percent, Yankuang Energy sank 0.91 percent, PetroChina improved 1.25 percent, China Petroleum and Chemical (Sinopec) advanced 0.98 percent, Huaneng Power climbed 1.19 percent, China Shenhua Energy strengthened 1.39 percent, Gemdale jumped 1.92 percent, Poly Developments retreated 1.38 percent, China Vanke accelerated 2.51 percent and Beijing Capital Development stumbled 2.16 percent.

The lead from Wall Street is soft as the major averages were unable to hold early gains on Tuesday, quickly heading south and ending in the red.

The Dow shed 79.75 points or 0.24 percent to finish at 32,653.20, while the NASDAQ dropped 97.30 points or 0.89 percent to end at 10,890.85 and the S&P 500 fell 15.88 points or 0.41 percent to close at 3,856.10.

The weakness that emerged on Wall Street came as traders wished to consolidate their positions ahead of the Fed announcement. The Fed is widely expected to raise interest rates by another 75 basis points, but traders have expressed optimism the central bank will signal plans to slow the pace of rate hikes at upcoming meetings.

In economic news, the Labor Department noted a jump in U.S. job openings in September, while the Institute for Supply Management showed a slight increase in U.S. manufacturing activity in October. Also, the Commerce Department said construction spending in the U.S. unexpectedly increased in October.

Crude oil prices climbed higher on Tuesday on a weak dollar, a reduction in OPEC crude output, an upward revision in oil demand forecast by OPEC, and record U.S. oil export data. West Texas Intermediate Crude oil futures for December jumped $1.84 or 2.1 percent at $88.37 a barrel.