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China Stock Market May Take Further Damage On Tuesday

The China stock market on Monday halted the four-day winning streak in which it had collected more than 135 points or 5.1 percent. The Shanghai Composite Index now rests just above the 2,665-point plateau and it may spin its wheels again on Tuesday.

The global forecast for the Asian markets is murky ahead of U.S. midterm elections later today as weakness from oil and technology stocks will likely cap any upside. The European and U.S. markets were mixed and little changed and the Asian bourses figure to open in similar fashion.

The SCI finished modestly lower on Monday following losses from the financial shares, property stocks and resource plays.

For the day, the index fell 11.05 points or 0.41 percent to finish at 2,665.43 after trading between 2,639.27 and 2,673.19. The Shenzhen Composite Index eased 0.09 points to end at 1,351.00.

Among the actives, Gemdale shed 0.65 percent, while Poly Developments plummeted 3.23 percent, China Vanke plunged 2.36 percent, Industrial and Commercial Bank of China skidded 1.42 percent, China Merchants Bank dropped 1.09 percent, Bank of China shed 0.81 percent, China Construction Bank declined 1.67 percent, China Life Insurance collected 0.13 percent, Ping An Insurance retreated 1.14 percent, PetroChina dipped 0.24 percent, Jiangxi Copper slid 1.30 percent, Baoshan Iron fell 1.03 percent, Yanzhou Coal lost 0.57 percent, Anhui Conch Cement eased 0.41 percent and China Petroleum and Chemical (Sinopec) was unchanged.

The lead from Wall Street provides little clarity as stocks moved in opposite directions on Monday, with the Dow and the S&P 500 adding to last week's strong gains but the tech-heavy NASDAQ extending the sharp pullback seen last Friday.

The Dow added 190.87 points or 0.76 percent to 25,461.70, while the NASDAQ fell 28.14 points or 0.38 percent to 7,328.85 and the S&P 500 gained 15.25 points or 0.56 percent to 2,738.31.

A notable drop by Apple (AAPL) weighed on the NASDAQ after a report from Japan's Nikkei newspaper said demand for the company's iPhone XR appears to be disappointing.

Overall trading was subdued, with traders reluctant to make significant moves ahead of today's midterm elections, which will decide control of both the House and Senate. Democrats are seen as having a better chance to claim a majority in the House, which would allow them to hinder President Donald Trump's agenda.

The Federal Reserve's looming monetary policy announcement on Thursday also kept traders on the sidelines. While the Fed is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

Crude oil futures eased Monday, after having moved up earlier in the day as U.S. sanctions on Iranian oil and came into force. Crude oil futures for December ended down $0.04 or less than 0.1 percent at $63.10 a barrel.

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