Plus   Neg

China Shares May Take Further Damage On Wednesday

The China stock market on Tuesday snapped the three-day winning streak in which it had advanced more than 55 points or 1.7 percent. The Shanghai Composite Index now rests just above the 3,310-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is broadly negative thanks to renewed geopolitical concerns and a drop in crude oil prices. The European and U.S. markets were firmly lower and the Asian bourses figure to follow suit.

The SCI finished modestly lower on Tuesday as losses from the oil and insurance companies were mitigated by support from the financial sector.

For the day, the index sank 16.46 points or 0.49 percent to finish at 3,310.24 after trading between 3,307.38 and 3,333.88. The Shenzhen Composite Index lost 13.53 points or 0.71 percent to end at 1,895.31.

Among the actives, Agricultural Bank of China spiked 2.48 percent, while Bank of China added 0.48 percent, Industrial and Commercial Bank of China collected 0.31 percent, China Construction Bank gained 0.37 percent, Bank of Communications was unchanged, China Vanke shed 0.43 percent, Gemdale picked up 0.41 percent, PetroChina lost 0.75 percent, China Petroleum and Chemical (Sinopec) dropped 1.245 percent, China Life tumbled 1.53 percent and Ping An Insurance plummeted 2.39 percent.

The lead from Wall Street is soft as stocks failed to hold a higher open Tuesday before sliding firmly into negative territory.

The Dow slid 171.58 points or 0.68 percent to 25,007.03, while the NASDAQ tumbled 77.31 points or 1.02 percent to 7,511.01 and the S&P fell 17.71 points or 0.64 percent to 2,765.31.

The weakness came amid renewed geopolitical concerns after President Donald Trump fired Secretary of State Rex Tillerson and replaced him with CIA Director Mike Pompeo.

Traders shrugged off a Labor Department report showing a modest increase in consumer prices and core CPI in February.

Crude oil futures were lower Tuesday amid expectations that U.S. oil inventories rose for a third week in a row. April WTI oil was down 65 cents or 1.1 percent to settle at $60.71/bbl.

Closer to home, China will release February figures for retail sales, industrial production and fixed asset investment later this morning.

Retail sales are expected to rise 10.0 percent on year, slowing from 10.2 percent in January. Industrial output is tipped to gain 6.2 percent, slowing from 6.6 percent in the previous month. FAI is pegged at 7.0 percent, down from 7.2 percent a month earlier.

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