The China stock market on Tuesday halted the three-day winning streak in which it had climbed more than 60 points or 2.6 percent. The Shanghai Composite finished just above the 2,290-point plateau, and now analysts are forecasting a technical rebound at the opening of trade on Wednesday.
The global forecast for the Asian markets suggests a mixed performance but little movement following reports that Greek officials have made progress on reaching an agreement to enact the reforms needed to receive a new bailout. The price of oil also is rising on continued concerns in Syria and the surrounding area. The European markets finished mixed but little changed and the U.S. bourses ended slightly higher - and the Asian markets are expected to split the difference.
The SCI finished sharply lower on Tuesday as investors took profit following the recent rally - particularly among the financial shares and the automobile producers.
For the day, the index plunged 39.23 points or 1.68 percent to finish at 2,291.90 after trading between 2,278.82 and 2,319.71. The Shenzhen Composite Index lost 1.7 percent to end at 869.87.
Among the decliners, Industrial and Commercial Bank of China shed 1.8 percent, while Bank of China lost 1.0 percent, Agricultural Bank of China fell 1.1 percent, SAIC Motor eased 0.2 percent and FAW Car plummeted 3.0 percent.
The lead from Wall Street is cautiously optimistic as stocks ended the day modestly higher on Tuesday after showing a notable move to the downside in early trading. Buying interest remained relatively subdued, however, limiting the upside for the markets.
The turnaround followed reports that Greek officials have made progress on reaching an agreement to enact the reforms needed to receive a new bailout. Indications that officials were struggling to reach an agreement, potentially putting Greece on track for a chaotic default, contributed to the initial weakness among stocks.
Traders also kept an eye on Federal Reserve Chairman Ben Bernanke's testimony before the Senate Banking Committee, although the Fed chief's prepared remarks were unchanged from last week's comments delivered before the House Budget Committee. In the question and answer session, Bernanke reiterated that easy monetary policy is still necessary to drive unemployment down from 8.3 percent in January.
On the economic front, the Federal Reserve reported a much bigger than expected increase in consumer credit in the month of December, with the increase reflecting another jump in non-revolving credit such as car loans.
Among individual stocks, Yum! Brands (YUM) advanced by 2.6 percent after reporting fourth quarter earnings that rose year-over-year and came in just above analyst estimates. The company, which owns the Pizza Hut, Taco Bell and KFC fast-food chains, also said it is well-positioned to meet or exceed its annual target of at least 10 percent earnings growth in 2012.
Beverage giant Coca-Cola (KO) also ended the day higher after reporting fourth quarter earnings that fell sharply year-over-year but came in above analyst estimates. The company's year-ago results included a gain related to the acquisition of its North American bottling operations.
While the NASDAQ briefly dipped into the red in late day trading, the major averages all closed in positive territory. The Dow rose 33.07 points or 0.3 percent to finish at 12,878.20, while the NASDAQ edged up 2.09 points or 0.1 percent to 2,904.08 and the S&P 500 climbed 2.72 points or 0.2 percent to 1,347.05.
In economic news, the Ministry of Industry and Information Technology said on Tuesday that China's industrial production may slow this quarter due to global economic slowdown. The ministry reiterated that it targets an industrial production growth of 11 percent this year. Last year, output grew 13.9 percent. China's industry is facing an increasingly complicated domestic and international environment with increased unstable and uncertain factors, the ministry said.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.