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China Bourse May Open Under Pressure On Wednesday

The China stock market returned from its week-long National Day holiday to the upside on Tuesday and has now finished higher in two of three sessions since the end of the two-day slide in which it had fallen more than 55 points or 1.8 percent. The Shanghai Composite Index now rests just beneath the 2,915-point plateau although it may tick lower again on Wednesday.

The global forecast for the Asian markets is broadly negative on diminishing hopes for a resolution to the trade dispute between the United States and China. The European and U.S. bourses were sharply lower and the Asian markets are expected to open in similar fashion.

The SCI finished modestly higher on September 30 as gains from the financials and properties were capped by weakness from the oil companies.

For the day, the index rose 8.38 points or 0.29 percent to finish at 2,913.57 after trading between 2,905.76 and 2,933.02. The Shenzhen Composite Index added 3.44 points or 0.22 percent to end at 1,598.64.

Among the actives, Industrial and Commercial Bank of China collected 0.54 percent, while Bank of China added 0.56 percent, China Construction Bank jumped 1.29 percent, China Merchants Bank rose 0.17 percent, China Life Insurance gained 0.66 percent, Ping An Insurance climbed 1.10 percent, PetroChina skidded 1.29 percent, China Petroleum and Chemical (Sinopec) shed 0.40 percent, China Shenhua Energy lost 0.69 percent, Gemdale soared 4.59 percent, Poly Developments surged 5.66 percent, China Vanke accelerated 1.78 percent and CITIC Securities dropped 0.67 percent.

The lead from Wall Street is weak as stocks opened lower on Tuesday, rebounded slightly but then headed firmly into the red at the close.

The Dow shed 313.98 points or 1.19 percent to 26,164.04, while the NASDAQ sank 132.52 points or 1.67 percent to 7,823.78 and the S&P fell 45.73 points or 1.56 percent to 2,893.06.

Selling pressure re-emerged late in the session after the Trump administration imposed visa restrictions on Chinese officials over abuses of Muslim minorities in the Xinjiang region. The new visa restrictions come just two days before the U.S. and China are scheduled to resume high-level trade talks in Washington.

Traders largely shrugged off a Labor Department report showing an unexpected decrease in U.S. producer prices in September - which may clear the way for the Federal Reserve to continue cutting interest rates amid signs of slowing economic growth.

Crude oil futures ended lower on Tuesday as fading optimism about U.S.-China trade talks weighed on prospects for near term energy demand. West Texas Intermediate Crude oil futures for November ended down $0.12 or 0.2 percent at $52.63 a barrel.

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