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Volatility Expected For China Stock Market

Ahead of the long break for the National Day holiday, the China stock market had turned lower again - one session after snapping the two-day slide in which it had fallen more than 55 points or 1.8 percent. The Shanghai Composite Index now rests just above the 2,900-point plateau and it may see wild swings Tuesday as it catches up on missed momentum.

The global forecast for the Asian markets is mixed to lower, thanks to ongoing concerns regarding the trade spat between the United States and China. The European markets were up and the U.S. bourses were down and the Asian markets are expected to follow the latter lead.

The SCI finished modestly lower on September 30 as losses from the financials and insurance companies were mitigated by support from the oil stocks and properties.

For the day, the index dropped 26.98 points or 0.92 percent to finish at the daily low of 2,905.19 after peaking at 2,936.48. The Shenzhen Composite Index sank 17.05 points or 1.06 percent to end at 1,595.21.

Among the actives, Industrial and Commercial Bank of China eased 0.18 percent, while Bank of China shed 0.56 percent, China Construction Bank skidded 1.13 percent, China Merchants Bank dropped 1.28 percent, China Life Insurance plunged 2.07 percent, Ping An Insurance tumbled 1.43 percent, PetroChina climbed 1.31 percent, China Petroleum and Chemical (Sinopec) added 0.60 percent, China Shenhua Energy gained 0.48 percent, Gemdale fell 0.26 percent, Poly Developments perked 0.42 percent, China Vanke slid 0.38 percent and CITIC Securities plummeted 2.47 percent.

The lead from Wall Street is soft as stocks showed a lack or direction on Monday, bouncing back and forth across the unchanged line before finishing in the red.

The Dow shed 95.70 points or 0.36 percent to 26,478.02, while the NASDAQ lost 26.18 points or 0.33 percent to 7,956.29 and the S&P 500 fell 13.22 points or 0.45 percent to 2,938.79.

The choppy trading on Wall Street came as traders seemed reluctant to make large moves ahead of Thursday's high-level trade talks in Washington. Chinese officials are signaling they're increasingly reluctant to agree to the broad trade deal being pursued by President Donald Trump.

The negotiations come as the trade war continues to hang over the economy, with a survey by the National Association for Business Economics showing 53 percent of economists see trade policy as the key downside risk to the economy.

Crude oil futures failed to hold early gains and ended slightly weak on Monday, despite data that showed a drop in OPEC output in September. West Texas Intermediate Crude oil futures for November ended down $0.06 at $52.75 a barrel after peaking at $54.06 earlier in the day.

Closer to home, China is scheduled to see September results for the services and composite indexes from Caixin later this morning. The services index is expected to show a score of 52.0, down slightly from 52.1 in August, while the composite is tipped to ease to 51.4 from 51.6.

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