Chinese stock market expected to open under pressure

(RTTNews) – China’s stock market has fallen in three straight sessions, dropping more than 80 points or 2.6% along the way. The Shanghai Composite Index now sits just above the 3,280-point plateau and is poised to extend its losses on Wednesday.

Global forecasts for Asian markets suggest consolidation on renewed fears for the economy over a resurgence of Caovid-19. European markets were up and US stock markets were down and Asian markets should follow the latter lead.

The SCI ended slightly lower on Tuesday after mixed performances from financials, properties and oil companies.

For the day, the index lost 32.12 points or 0.97% to end at 3,281.47 after trading between 3,277.08 and 3,319.25. The Shenzhen Composite Index fell 31.78 points or 1.45% to end at 2,155.56.

Among assets, Industrial and Commercial Bank of China rose 0.22%, while Bank of China collected 0.30%, China Merchants Bank and China Construction Bank both lost 0.35%, China Life Insurance lost 0.57%, Jiangxi Copper fell 0.12%, Aluminum Corp of China (Chalco) fell 0.22%, Yankuang Energy strengthened 1.54%, PetroChina fell 0.19% , China Petroleum and Chemical (Sinopec) rose 0.25%, Huaneng Power jumped 1.99%, China Shenhua Energy jumped 2.52%, Gemdale rose 1.59%, Poly Developments climbed 2.01%, China Vanke gained 0.26%, China Fortune Land fell 0.96%, Beijing Capital Development fell 0.22% and Bank of Communications was unchanged.

Wall Street’s lead is negative as the major averages opened higher on Tuesday, but a late fall pushed them into the red at the close.

The Dow Jones lost 192.51 points or 0.62% to end at 30,981.51, while the NASDAQ fell 107.87 points or 0.95% to end at 11,264.73 and the S&P 500 lost 35.63 points or 0.92% to close at 3,818.80.

Wall Street’s late-day weakness came as traders eagerly awaited the Labor Department’s consumer price inflation report for June.

Concerns about the emergence of a new, more infectious strain of Covid-19 in several parts of the world also continued to loom.

Investors also appeared to be pulling money out of stocks ahead of what some expect will be a tough quarterly earnings season.

The price of crude oil fell on Tuesday on worries about the outlook for global demand amid fears of recession and a new surge in Covid-19 cases. West Texas Intermediate for August delivery fell $8.25 or 7.9% to $95.84 a barrel, closing below $100 a barrel for the first time in two months.

Closer to home, China is expected to release June figures for imports, exports and trade balance later this morning. Imports are expected to rise 3.9% year on year, from 4.1% in May. Exports are called higher by 12.0% a year from 16.9% the previous month. The trade surplus is pegged at $75.7 billion, down from $78.76 billion a month earlier.

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