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Hong Kong Stock Market Expected To Open Under Pressure

The Hong Kong stock market on Tuesday snapped the two-day winning streak in which it had skyrocketed more than 1,200 points or 4.8 percent. The Hang Seng Index now rests just above the 25,975-point plateau and it's expected to open in the red again on Wednesday.

The global forecast for the Asian markets is negative on concerns over the rebounding number of coronavirus cases. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The Hang Seng finished sharply lower on Tuesday following losses from the financials, properties, casinos and oil and insurance companies.

For the day, the index sank 363.50 points or 1.38 percent to finish at 25,975.66 after trading between 25,911.74 and 26,782.62.

Among the actives, Wharf Real Estate plummeted 5.68 percent, while Sands China plunged 4.16 percent, Sun Hung Kai Properties tanked 3.26 percent, CNOOC tumbled 3.16 percent, China Mobile skidded 2.67 percent, Galaxy Entertainment retreated 2.64 percent, CITIC declined 2.54 percent, Hengan International jumped 2.30 percent, China Petroleum and Chemical (Sinopec) surrendered 2.01 percent, BOC Hong Kong dropped 1.80 percent, Hong Kong & China Gas sank 1.63 percent, Country Garden Holdings shed 1.43 percent, Ping An Insurance climbed 1.28 percent, Industrial and Commercial Bank of China lost 1.16 percent, AAC Technologies fell 1.13 percent, AIA Group slid 1.03 percent, Tencent Holdings dipped 0.77 percent, China Mengniu Dairy slipped 0.61 percent, WH Group was down 0.41 percent, CSPC Pharmaceutical added 0.40 percent and China Life Insurance eased 0.26 percent.

The lead from Wall Street is soft as stocks moved significantly lower on Tuesday, giving ground following the strong upward move seen in recent sessions.

The Dow tumbled 396.85 points or 1.51 percent, while the NASDAQ lost 89.76 points or 0.86 percent to end at 10,343.89 and the S&P 500 dropped 34.40 points or 1.08 percent to close at 3,145.32.

The weakness that emerged on Wall Street came as a lack of major U.S. economic data allowed concerns about the coronavirus pandemic to resurface. The concerns came as World Health Organization officials warned that the death toll from the pandemic may start to climb again.

Atlanta Federal Reserve President Raphael Bostic also warned that the spike in coronavirus cases in southern and western states could slow the U.S. economic recovery.

Crude oil futures settled nearly flat on Tuesday as traders weighed the prospects for energy demand amid reports showing a surge in coronavirus infections. West Texas Intermediate Crude oil futures for August settled at $40.62 a barrel, down just a penny from the previous close.

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