China Bourse May Extend Tuesday's Losses

(RTTNews) - The China stock market on Tuesday snapped the three-day winning streak in which it had risen more than 25 points or 0.9 percent. The Shanghai Composite Index now rests just above the 2,935-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is soft on trade and interest rate concerns and a slide in crude oil prices. The European markets were up and the U.S. bourses were down and the Asian markets are expected to follow the latter lead.

The SCI finished slightly lower on Tuesday following losses from the insurance companies, support from the oil and property stocks and a mixed picture from the financial sector.

For the day, the index dipped 4.57 points or 0.16 percent to finish at 2,937.62 after trading between 2,931.29 and 2,944.82. The Shenzhen Composite Index eased 0.53 points or 0.03 percent to end at 1,571.81.

Among the actives, Industrial and Commercial Bank of China added 0.18 percent, while Bank of China shed 0.27 percent, China Merchants Bank was up 0.03 percent, China Life Insurance tumbled 1.79 percent, Ping An Insurance skidded 1.28 percent, PetroChina lost 0.30 percent, China Petroleum and Chemical gained 0.76 percent, China Shenhua Energy rose 0.90 percent, Gemdale advanced 1.34 percent, Poly Developments perked 1.27 percent, China Vanke climbed 0.20 percent and China Construction Bank was unchanged.

The lead from Wall Street is uninspired as stocks fluctuated on Tuesday before pulling back from record closing highs to finish in the red.

The Dow shed 23.53 points or 0.09 percent to 27,335.63, while the NASDAQ lost 35.39 points or 0.43 percent to 8,222.80 and the S&P 500 fell 10.26 points or 0.34 percent to 3,0004.04.

Selling pressure emerged in afternoon trading after President Donald Trump told reporters U.S.-China trade talks still have a "long way to go" and once again threatened to impose tariffs on another $325 billion worth of Chinese goods.

The lower close also followed a mixed batch of U.S. economic data that led to uncertainty about the near-term outlook for interest rates. Raising concerns the Federal Reserve could refrain from cutting rates later this month, the Commerce Department noted much stronger than expected U.S. retail sales growth in June.

Crude oil prices tumbled on Tuesday amid signs U.S. and Iranian officials may renew negotiations and on reports that Hurricane Barry did not cause significant damage to oil infrastructure in the Gulf of Mexico. West Texas Intermediate Crude oil futures for August ended down $1.96 or 3.3 percent at $57.62 a barrel, the lowest mark since July 5.
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