China Stock Market May Find Traction On Tuesday

China Stock Market May Find Traction On Tuesday

(RTTNews) – The China stock market has finished lower in two straight sessions, sinking almost 90 points or 3.3 percent along the way. The Shanghai Composite Index now rests just above the 2,750-point plateau although it may stop the bleeding on Tuesday.

The global forecast for the Asian markets is upbeat on optimism over upcoming earnings, especially among the technology stocks. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished sharply lower on Monday following losses from the resource stocks, energy companies and properties, while the financials were mixed.

For the day, the index tumbled 75.94 points or 2.68 percent to finish at 2,756.34 after trading between 2,735.37 and 2,828.32. The Shenzhen Composite Index plummeted 75.31 points or 4.47 percent to end at 1,611.26.

Among the actives, Bank of China collected 0.76 percent, while China Construction Bank perked 0.15 percent, China Merchants Bank jumped 1.75 percent, China Life Insurance dipped 0.19 percent, Jiangxi Copper tanked 3.26 percent, Aluminum Corp of China (Chalco) plummeted 4.56 percent, Yankuang Energy tumbled 2.05 percent, PetroChina declined 1.26 percent, China Petroleum and Chemical (Sinopec) skidded 1.12 percent, Huaneng Power retreated 1.47 percent, China Shenhua Energy dropped 0.87 percent, Gemdale plunged 4.91 percent, Poly Developments sank 1.69 percent, China Vanke slumped 3.83 percent and Industrial and Commercial Bank of China and Bank of Communications were unchanged.

The lead from Wall Street is positive as the major averages opened solidly higher, with the Dow and S&P hitting fresh record intraday highs; they faded as the day progressed but still ended well in the green.

The Dow climbed 138.01 points or 0.36 percent to finish at 38,001.81, while the NASDAQ gained 49.32 points or 0.32 percent to close at 15,360.29 and the S&P 500 rose 10.62 points or 0.22 percent to end at 4,850.43.

The early strength on Wall Street came on continued optimism about the outlook for earnings from major tech firms, with Intel (INTC), IBM Corp. (IBM) and Netflix (NFLX) among the companies due to release their quarterly results this week.

In economic news, the Conference Board noted a modest decrease in its index of leading U.S. economic indicators in December, continuing to signal underlying weakness in the U.S. economy.

Oil prices rose sharply on Monday amid concerns about possible supply disruptions in the Middle East, and extreme cold weather in North America. West Texas Intermediate Crude oil futures for February settled at $75.19 a barrel, gaining $1.78 or about 2.4 percent.

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