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China Bourse Expected To Remain Rangebound

The China stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had advanced more than 15 points or 0.4 percent. The Shanghai Composite Index now rests just beneath the 3,310-point plateau and it figures to remain in that neighborhood again on Tuesday.

The global forecast is mixed, with technology and oil stocks expected to cap gains from the broader markets. The European markets were up and the U.S. bourses were mixed, and the Asian markets figure to follow the latter lead.

The SCI finished modestly lower on Monday as support from the financials, properties and insurance stocks held declines from the broader market at bay.

For the day, the index retreated 8.00 points or 0.24 percent to finish at 3,309.62 after trading between 3,304.10 and 3,324.00.

Among the actives, Industrial and Commercial Bank of China collected 0.17 percent, while Bank of China and Agricultural Bank of China were unchanged, PetroChina added 0.12 percent, China Petroleum and Chemical (Sinopec) gained 0.17 percent, China Life spiked 1.85 percent, Ping An Insurance climbed 1.89 percent, Vanke advanced 0.39 percent and Gemdale shed 0.48 percent.

The lead from Wall Street is murky as stocks turned mixed Monday after an initial move to the upside. The Dow reached a new record closing high, but the NASDAQ and the S&P 500 ended in the red.

The Dow rose 58.46 points or 0.24 percent to 24,290.05, but the NASDAQ tumbled 72.22 points or 1.05 percent to 6,775.37 and the S&P 500 edged down 2.78 points or 0.11 percent to 2,639.44.

Traders reacted to news that Senate Republicans narrowly approved a massive tax reform bill early Saturday morning. The Senate voted 51 to 49 in favor of the bill known as the Tax Cuts and Jobs Act, with the vote coming down along party lines.

The pullback by the NASDAQ partly reflected concerns that technology companies will not benefit as much from the tax cuts.

In economic news, the Commerce Department released a report showing a modest decrease in new orders for manufactured goods in October.

Crude oil futures fell Monday for the first time in three sessions as a strong dollar dented commodity prices. January WTI oil was down 89 cents or 1.5 percent to settle at $57.47/bbl.

Closer to home, China will see November results for the services and composite PMIs from Caixin later this morning; in October, their scores were 51.2 and 51.0, respectively.

by RTT Staff Writer

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