China Stock Market Tipped To Head South Again On Tuesday

(RTTNews) - The China stock market on Monday wrote a finish to the two-day slide in which it had given up almost 35 points or 1.1 percent. The Shanghai Composite Index new sits just above the 3,275-point plateau although it's likely to see renewed consolidation on Tuesday.

The global forecast for the Asian markets continues to be negative on concerns over the outlook for interest rates and recession fears. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

The SCI finished modestly higher on Monday following gains from the energy producers and oil companies, weakness from the financials and a mixed picture from the property sector.

For the day, the index improved 19.72 points or 0.61 percent to finish at 3,277.79 after trading between 3,247.19 and 3,278.17. The Shenzhen Composite Index advanced 20.33 points or 0.92 percent to end at 2,228.32. Among the actives, Bank of China fell 0.33 percent, while China Construction Bank dipped 0.18 percent, China Merchants Bank shed 0.68 percent, Bank of Communications rose 0.22 percent, China Life Insurance lost 0.37 percent, Jiangxi Copper jumped 1.78 percent, Aluminum Corp of China (Chalco) soared 3.12 percent, Yankuang Energy climbed 1.25 percent, PetroChina advanced 0.97 percent, China Petroleum and Chemical (Sinopec) added 0.72 percent, Huaneng Power gained 0.25 percent, China Shenhua Energy strengthened 1.52 percent, Gemdale spiked 1.91 percent, Poly Developments slumped 0.65 percent, China Vanke perked 0.24 percent, China Fortune Land improved 0.34 percent, Beijing Capital Development was down 0.45 percent and Industrial and Commercial Bank of China was unchanged.

The lead from Wall Street is brutal as the major averages opened sharply lower and remained deep in the red throughout the trading day.

The Dow plummeted 643.13 points or 1.91 percent to finish at 33,063.61, while the NASDAQ plunged 323.64 points or 2.55 percent to close at 12,381.57 and the S&P 500 sank 90.49 points or 2.14 percent to end at 4,137.99.

Concerns about the outlook for interest rates contributed to the weakness on Wall Street ahead of this week's economic symposium in Jackson Hole, Wyoming - where Fed Chair Jerome Powell is expected to sound a more hawkish tone in his comments.

Aggressive monetary tightening by central banks in Europe add to the nervous sentiment, as do concerns about a possible recession in major economies.

Crude oil prices moved lower on Monday on concerns about outlook for energy demand, while the dollar's strength also weighed on oil prices. West Texas Intermediate Crude oil futures for September ended lower by $0.54 or 0.6 percent at $90.23 a barrel.