Taiwan Stock Market Tipped To Open Under Pressure

(RTTNews) - The Taiwan stock market on Wednesday wrote a finish to the six-day winning streak in which it had spiked more than 710 points or 4.6 percent. The Taiwan Stock Exchange now rests just beneath the 16,160-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets is increasingly negative as the debt ceiling situation in the United States continues to drag on. The European and U.S. bourses were down and the Asian markets figure to follow suit.

The TSE finished slightly lower on Wednesday following losses from the financials and cement companies, while the technology stocks were mixed.

For the day, the index lost 28.71 points or 0.18 percent to finish at 16,159.32 after trading between 16,070.16 and 16,186.62.

Among the actives, Mega Financial dropped 0.83 percent, while CTBC Financial shed 0.41 percent, First Financial lost 0.53 percent, Taiwan Semiconductor Manufacturing Company dropped 0.94 percent, United Microelectronics Corporation added 0.51 percent, Hon Hai Precision gained 0.49 percent, Largan Precision improved 0.45 percent, Catcher Technology retreated 1.60 percent, MediaTek sank 0.70 percent, Delta Electronics advanced 0.83 percent, Novatek Microelectronics fell 0.37 percent, Formosa Plastics increased 0.43 percent, Nan Ya Plastics perked 0.25 percent, Asia Cement slumped 0.67 percent, Taiwan Cement eased 0.13 percent, China Steel was up 0.17 percent and Cathay Financial, Fubon Financial and E Sun Financial were unchanged.

The lead from Wall Street suggests continued consolidation as the major averages opened lower on Wednesday and remained in the red throughout the trading day.

The Dow tumbled 255.59 points or 0.77 percent to finish at 32,799.92. while the NASDAQ sank 76.08 points or 0.61 percent to close at 12,484.16 and the S&P 500 dropped 30.34 points or 0.73 percent to end at 4,115.24.

Lingering concerns about lawmakers' ability to reach an agreement on increasing the U.S. debt ceiling continued to weigh on Wall Street.

While negotiations have continued this week, traders remain worried about reports suggesting a lack of progress towards a deal.

Traders were also digesting the minutes of the Federal Reserve's May monetary policy meeting, which indicated uncertainty about the outlook for interest rates.

Crude oil prices moved higher Wednesday, rising for the third consecutive session on concerns over tightening supply after data showed a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for July jumped $1.43 or 2 percent at $74.34 a barrel.