China Stock Market Likely To Remain Rangebound On Wednesday

(RTTNews) – The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had eased just two points. The Shanghai Composite Index now rests just above the 3,355-point plateau and it may inch slightly higher on Wednesday.

The global forecast for the Asian markets is murky, with coronavirus concerns offset by vaccine optimism. The European markets were up and the U.S. bourses were mostly down and the Asian markets figure to split the difference.

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

For the day, the index tumbled 63.79 points or 1.86 percent to finish at 3,356.78 after trading between 3,353.86 and 3,415.75. The Shenzhen Composite Index surrendered 40.50 points pr 1.76 percent to end at 2,264.48.

Among the actives, Industrial and Commercial Bank of China skidded 1.20 percent, while Bank of China dropped 0.94 percent, China Construction Bank tumbled 2.04 percent, China Merchants Bank tanked 2.28 percent, Bank of Communications retreated 1.33 percent, China Life Insurance surrendered 4.37 percent, Jiangxi Copper cratered 10 percent, Aluminum Corp of China (Chalco) plunged 5.88 percent, Yanzhou Coal plummeted 6.46 percent, PetroChina lost 2.59 percent, China Petroleum and Chemical (Sinopec) sank 2.21 percent, Gemdale eased 0.07 percent, Poly Developments rose 0.19 percent and China Vanke fell 0.43 percent.

The lead from Wall Street is mixed as the Dow and S&P both opened lower and largely stayed that way, while the NASDAQ opened higher and was mostly in the green throughout the session.

The Dow shed 200.94 points or 0.67 percent to finish at 30,015.51, while the NASDAQ climbed 65.40 points or 0.51 percent to end at 12,807.92 and the S&P 500 fell 7.66 points or 0.21 percent to close at 3,687.26.

The choppy trading on Wall Street comes as traders seem reluctant to make significant moves amid uncertainty about the near-term outlook for the markets following the recent run to record highs.

Reports about a new coronavirus strain have generated some negative sentiment, although news of the approval of a new stimulus bill has helped prop up the markets.

In economic news, the Commerce Department released revised data showing the U.S. economy grew slightly more than estimated in Q3 of 2020. Also, the National Association of Realtors said existing home sales pulled back in November.

Crude oil prices declined sharply on Tuesday amid rising worries about energy demand due to new restrictions on travel following a surge in coronavirus cases. West Texas Intermediate Crude oil futures for February ended down $0.95 or 2 percent at $47.02 a barrel.