(RTTNews) – The China stock market on Tuesday ended the three-day winning streak in which it had advanced more than 40 points or 1.1 percent. The Shanghai Composite Index now rests just above the 3,660-point plateau and it’s expected to face continued consolidation on Wednesday.
The global forecast for the Asian markets is soft due to the outlook for interest rates, despite encouraging data. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.
The SCI finished sharply lower on Tuesday following losses from the financial shares, property stocks and resource companies.
For the day, the index tanked 52.77 points or 1.42 percent to finish at 3,662.60 after trading between 3,655.63 and 3,723.85. The Shenzhen Composite Index lost 11.95 points or 0.48 percent to end at 2,488.88.
Among the actives, Industrial and Commercial Bank of China skidded 1.26 percent, while Bank of China retreated 1.29 percent, China Construction Bank tumbled 2.23 percent, China Merchants Bank tanked 3.38 percent, Bank of Communications declined 1.52 percent, China Life Insurance plunged 3.65 percent, Jiangxi Copper cratered 7.69 percent, Aluminum Corp of China (Chalco) plummeted 5.57 percent, Yanzhou Coal surged 3.26 percent, PetroChina soared 3.82 percent, China Petroleum and Chemical (Sinopec) dropped 1.06 percent, China Shenhua Energy surrendered 3.30 percent, Gemdale sank 3.47 percent, Poly Developments shed 1.22 percent, China Vanke lost 5.32 percent and China Fortune Land was down 4.55 percent.
The lead from Wall Street is negative as the major averages opened higher on Tuesday but quickly turned lower and finished in the red.
The Dow tumbled 292.06 points or 0.84 percent to finish at 34,577.57, while the NASDAQ sank 67.82 points or 0.45 percent to close at 15,037.76 and the S&P 500 fell 25.68 points or 0.57 percent to end at 4,443.05.
Stocks initially benefited from a positive reaction to a highly anticipated Labor Department report showing consumer prices increased less than expected in August. The relatively tame inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus.
However, subsequent comments from economists suggested that the Fed is still likely to begin tapering its asset purchases as soon as December.
The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.
Crude oil futures settled slightly higher Tuesday after the Labor Department said U.S. consumer prices increased less than expected last month, while traders also weighed the impact of tropical storm Nicholas. Crude oil futures settled at $70.46 a barrel, up a penny from the previous close.
Closer to home, China is scheduled to release August figures for house prices, fixed asset investment, industrial production, retail sales and unemployment later this morning.
House prices were up 4.6 percent on year in July. FAI is tipped to rise 9.0 percent on year, slowing from 10.3 percent in the previous month. Industrial output is pegged at 5.8 percent on year, down from 6.4 percent a month earlier. Retail sales are expected to add an annual 7.0 percent, down from 8.5 percent in the previous month. The jobless rate in July was 5.1 percent.
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