The China stock market on Tuesday halted the six-day winning streak in which it had soared more than 200 points or 6.5 percent. The Shanghai Composite Index now rests just above the 3,290-point plateau and it's called lower again on Wednesday.
The global forecast for the Asian markets is broadly negative thanks to renewed concern over interest rates and a pullback in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow suit.
The SCI finished sharply lower on Tuesday following losses from the financials, properties and oil and insurance companies.
For the day, the index tumbled 37.51 points or 1.13 percent to finish at 3,292.07 after trading between 3,284.63 and 3,328.67. The Shenzhen Composite Index slid 6.10 points or 0.34 percent to end at 1,808.92.
Among the actives, Bank of China shed 1.82 percent, while Agricultural Bank of China tumbled 2.78 percent, Industrial and Commercial Bank of China lost 3.28 percent, China Construction Bank dropped 3.77 percent, Bank pf Communications slid 1.79 percent, China Vanke skidded 3.74 percent, Gemdale retreated 2.35 percent, China Life fell 1.19 percent, Ping An gave away 1.40 percent, PetroChina was down 1.57 percent and China Petroleum and Chemical (Sinopec) plummeted 1.06 percent.
The lead from Wall Street is soft as stocks fell under pressure on Tuesday after the major averages had moved sharply higher over the two previous sessions.
The Dow tumbled 299.24 points or 1.16 percent to 25,410.03, while the NASDAQ lost 91.11 points or 1.23 percent to 7,330.35 and the S&P 500 plunged 35.32 points or 1.27 percent to 2,744.28.
Renewed interest rate concerns contributed to the pullback by stocks, as traders kept a close eye on new Federal Reserve Chairman Jerome Powell's testimony before the House Financial Services Committee.
Powell's remarks before the committee were interpreted by some as indicating that the Fed may raise rates more than the three times currently anticipated.
In economic news, the Commerce Department noted a bigger than expected drop in durable goods orders in January, while the Conference Board's consumer confidence index jumped more than expected in February.
Crude oil futures fell Tuesday, trimming recent gains as the dollar strengthened versus major rivals. April WTI oil was down 90 cents or 1.4 percent to settle at $63.01/bbl. The dollar rallied on perceived hawkish remarks from Powell.
Closer to home, China will see February results for its manufacturing and non-manufacturing PMIs. The manufacturing PMI is expected to show a score of 51.2, down from 51.3 in January. The non-manufacturing PMI is called at 55.0, down from 55.3 in the previous month. The composite is pegged at 54.4, down from 54.6 a month earlier.
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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.