The China stock market on Tuesday emphatically snapped the two-day winning streak in which it had picked up more than 40 points or 1.2 percent. The Shanghai Composite Index now rests just above the 3,370-point plateau, although it figures to find renewed support on Wednesday.
The global forecast for the Asian markets is broadly positive as analysts believe this week's brutal selloff has been seriously overdone. The European markets were down and the U.S. bourses were sharply higher - and the Asian markets figure to follow the latter lead.
The SCI finished sharply lower on Tuesday following heavy damage from the financials, properties and oil companies.
For the day, the index retreated 116.84 points or 3.35 percent to finish at 3,370.65 after trading between 3,364.22 and 3,440.12. The Shenzhen Composite Index skidded 80.21 points or 4.4 percent to end at 1,726.09.
Among the actives, Agricultural Bank of China shed 0.84 percent, while Bank of China collected 0.21 percent, Industrial and Commercial Bank of China tumbled 2.32 percent, Bank of Communications eased 0.14 percent, China Construction Bank plummeted 3.98 percent, China Life skidded 2.85 percent, Ping An Insurance dropped 2.56 percent, PetroChina plunged 5.67 percent, China Petroleum and Chemical (Sinopec) retreated 2.88 percent, China Vanke shed 3.16 percent and Gemdale lost 7.01 percent.
The lead from Wall Street is broadly positive as stocks saw considerable volatility on Tuesday before ending firmly in positive territory, denting the sell-off in the previous session.
The Dow jumped 567.02 points or 2.33 percent to 24,912.77, while the NASDAQ surged 148.36 points or 2.13 percent to 7,115.88 and the S&P climbed 46.20 points or 1.74 percent to 2,695.14.
The volatility seen for most of the session came as traders seemed to question the near-term outlook for the markets. Some traders looked to pick up stocks at reduced levels, while others wondered if the recent pullback would continue.
Railroad stocks showed a substantial move to the upside, while computer hardware, semiconductor and chemical stocks also saw solid gains.
Crude oil futures continued to fall Tuesday, even as U.S. stocks were found their footing after the biggest one-day drop for the Dow Jones Industrial Average. A report from the Energy Information Administration said U.S. production will rise in the next two years, denting oil prices.
March WTI crude was down 30 cents or 0.5 percent at $63.85 a barrel. WTI crude will average $58.28 a barrel this year, the EIA said, up from last month's estimate of $55.33, and $57.51 in 2019.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.