China Stock Market May See Continued Consolidation

(RTTNews) - The China stock market on Monday snapped the three-day winning streak in which it had advanced almost 30 points or 0.9 percent. The Shanghai Composite Index now rests just above the 2,975-point plateau and it's tipped to open in the red again on Tuesday.

The global forecast for the Asian markets suggests mild consolidation on continuing concerns over the world economy. The European markets were down and the U.S. bourses were mixed and flat and the Asian markets figure to split the difference.

The SCI finished modestly lower on Monday following losses from the financial shares, property stocks and oil and insurance companies.

For the day, the index dropped 29.37 points or 0.98 percent to finish at 2,977.08 after trading between 2,960.83 and 2,998.40. The Shenzhen Composite Index lost 15.29 points or 0.91 percent to end at 1,660.06.

Among the actives, Industrial and Commercial Bank of China shed 0.90 percent, while Bank of China lost 0.28 percent, China Construction Bank skidded 1.27 percent, China Merchants Bank tumbled 1.36 percent, China Life Insurance dropped 1.17 percent, Ping An Insurance sank 1.05 percent, PetroChina fell 0.31 percent, China Petroleum and Chemical (Sinopec) slid 0.39 percent, China Shenhua Energy plunged 1.94 percent, Gemdale retreated 2.49 percent, Poly Developments gave away 0.69 percent and China Vanke plummeted 2.43 percent.

The lead from Wall Street is of no help as stocks showed a lack of direction on Monday, bouncing back and forth across the unchanged line before ending mixed.

The Dow added 14.92 points or 0.06 percent to 26,949.99, while the NASDAQ lost 5.21 points or 0.06 percent to 8,112.46 and the S&P 500 fell 0.29 points or 0.01 percent to 2,991.78.

The lackluster performance on Wall Street came as traders continued to express uneasiness about the global economic outlook following the release of disappointing European economic data.

Waning optimism about a potential U.S.-China trade deal also weighed on the markets after the Chinese cut short a visit to the U.S. last week and President Donald Trump indicated he is not in a hurry to reach an agreement.

Crude oil futures settled higher on Monday due to possible drop in crude oil supply following recent attacks on Saudi oil facilities. West Texas Intermediate Crude oil futures for November ended up $0.55 or 1 percent at $58.64 a barrel.
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