Lower Open Anticipated For China Stock Market

(RTTNews) - The China stock market has moved lower in three straight sessions, sinking more than 75 points or 2.6 percent in that span. The Shanghai Composite Index now sits just above the 2,860-point plateau and it's looking at another soft start again on Tuesday.

The global forecast for the Asian markets is bleak on continuing concerns about the health of the U.S. economy. The European and U.S. markets were sharply lower on Monday and the Asian bourses are expected to open in similar fashion again - although this selloff is quite overdone and may fade as the day progresses.

The SCI finished sharply lower on Monday following losses from the property and resource stocks, while the financials came in mixed.

For the day, the index sank 44.64 points or 1.54 percent to finish at the daily low of 2,860.70 after peaking at 2,919.03. The Shenzhen Composite Index shed 32.97 points or 2.08 percent to end at 1,548.83.

Among the actives, Industrial and Commercial Bank of China eased 0.17 percent, while Bank of China shed 0.64 percent, China Construction Bank collected 0.27 percent, China Merchants Bank lost 0.56 percent, Bank of Communications sank 0.67 percent, China Life Insurance jumped 1.86 percent, Jiangxi Copper tanked 2.50 percent, Aluminum Corp of China (Chalco) plunged 3.20 percent, Yankuang Energy tumbled 1.84 percent, PetroChina plummeted 4.97 percent, China Petroleum and Chemical (Sinopec) retreated 2.28 percent, Huaneng Power surrendered 2.25 percent, China Shenhua Energy declined 1.64 percent, Gemdale dipped 0.66 percent, Poly Developments eased 0.36 percent and China Vanke fell 0.44 percent.

The lead from Wall Street is brutal as the major averages opened deep in the red on Monday and stayed that way throughout the trading day.

The Dow plummeted 1,033 .99 points or 2.60 percent to finish at 38,703.27, while the NASDAQ tanked 576.08 points or 3.43 percent to close at 16,200.08 and the S&P 500 plunged 160.23 points or 3.00 percent to end at 5,186.33.

The continued weakness on Wall Street came on concerns that the U.S. economy may slip into recession following last Friday's disappointing jobs report.

Stocks regained some ground following the release of a report from the Institute for Supply Management showing service sector activity in the U.S. turned positive in the month of July.

Oil futures lower on Monday on concerns about the outlook for demand amid fears the U.S. economy could slip into a recession. West Texas Intermediate Crude oil futures for September sank $0.58 or 0.7 percent at $72.94 a barrel.