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China Stock Market May Test Support At 3,400 Points

The China stock market on Tuesday halted the six-day winning streak in which it had advanced more than 70 points or 2.2 percent. The Shanghai Composite Index now rests just beneath the 3,430-point plateau and may extend its losses on Wednesday.

The global forecast for the Asian markets is negative thanks to uncertainty over U.S. tax reform and a decline in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The SCI finished modestly lower on Tuesday as losses from the financials, oil companies and insurance stocks were tempered by support from the property sector.

For the day, the index retreated 18.29 points or 0.53 percent to finish at 3,429.55 after trading between 3,419.69 and 3,450.49, The Shenzhen Composite slid 0.95 percent to end at 2,025.78.

Among the actives, Agricultural Bank of China shed 0.82 percent, while Industrial and Commercial Bank of China lost 0.84 percent, Bank of China fell 0.26 percent, Vanke surged 5.32 percent, Gemdale added 0.63 percent, PetroChina slid 0.48 percent, China Petroleum and Chemical (Sinopec) tumbled 0.82 percent and China Life gave away 0.56 percent.

The lead from Wall Street is soft as stocks opened lower on Tuesday, regained some ground but still finish in the red - offsetting modest gains from the previous session.

The Dow shed 30.23 points or 0.13 percent to 23,409.47, while the NASDAQ lost 19.72 points or 0.29 percent to 6,737.87 and the S&P 500 fell 5.97 points or 0.23 percent to 2,578.87.

Uncertainty about the outlook for the Republican tax reform proposal weighed as the House prepares to vote on their bill later this week. The House bill has significant differences from the Senate version, raising concerns about whether GOP lawmakers will be able to combine the legislation.

In economic news, the Labor Department reported that producer prices increased more than expected in October - as did core producer prices.

Energy stocks showed a significant move to the downside on Tuesday amid a steep drop by the price of crude oil - which tumbled $1.06 to $55.70 a barrel for December delivery.

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