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Hong Kong Shares Expected To Find Traction On Wednesday

The Hong Kong stock market has moved lower in two straight sessions, tumbling more than 220 points or 0.7 percent along the way. The Hang Seng Index now rests just above the 28,580-point plateau although it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is upbeat on receding fears of a global trade war. The European and U.S. markets were up and the Asian bourses figure to follow that lead.

The Hang Seng finished modestly lower on Tuesday as losses from the financials, properties and insurance companies were mitigated by support from the oil companies.

For the day, the index lost 150.12 points or 0.52 percent to finish at 28,583.01 after trading between 28,538.03 and 28,682.31.

Among the actives, Tencent Holdings plummeted 3.27 percent, while China Life plunged 1.61 percent, CNOOC spiked 1.55 percent, CSPC Pharmaceuticals tumbled 1.44 percent, Ping An skidded 1.29 percent, China Mobile jumped 1.22 percent, WH Group dropped 1.10 percent, Galaxy Entertainment shed 0.86 percent, China Petroleum and Chemical (Sinopec) climbed 0.80 percent, Hong Kong & China Gas lost 0.74 percent, CITIC fell 0.72 percent, BOC Hong Kong collected 0.53 percent, China Mengniu Dairy dipped 0.41 percent, AIA Group eased 0.29 percent, Industrial and Commercial Bank of China was down 0.17 percent and Sands China added 0.12 percent.

Stocks showed a strong opening move to the upside on Tuesday and held most of their gains throughout the afternoon. The upward move came on the heels of the notable weakness seen a day earlier.

The Dow rose 108.36 points or 0.43 percent to 25,415.19, the NASDAQ advanced 41.78 points or 0.55 percent to 7,671.79 and the S&P 500 climbed 13.69 points or 0.49 percent to 2,816.29.

The strength followed reports that the U.S. and China are trying to restart talks aimed at averting a full-blown trade war - although a specific timetable, the issues to be discussed and the format for talks aren't finalized.

In economic news, the Commerce Department said personal income and spending both increased in line with estimates in June. Also, the Conference Board noted a modest rebound in consumer confidence in July.

Traders seemed reluctant to make big moves ahead of today's Federal Reserve's money policy announcement. The Fed is widely expected to leave interest rates unchanged, but the accompanying statement is likely to be closely examined for any hints about future rate hikes.

Crude oil prices slipped on Tuesday amid worries about oversupply in the market after a survey showed a sharp hike in crude production by OPEC. Crude oil futures for September ended down $1.37 or almost 2 percent at $68.76 a barrel on the New York Mercantile Exchange.

Closer to home, Hong Kong will provide June numbers for retail sales later today; in May, sales jumped 12.9 percent on year.

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