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Little Movement Likely For China Stock Market

The China stock market has moved lower in back-to-back sessions, sliding almost 60 points or 1.8 percent in that span. The Shanghai Composite Index now sits just above the 3,635-point plateau and it's expected to be rangebound on Wednesday.

The global forecast for the Asian markets is mixed and flat, with oil and technology stocks likely to continue to weigh. The European and U.S. markets were mixed and little changed and the Asian bourses figure to follow that lead.

The SCI finished slightly lower on Tuesday following weakness from the properties and mixed performances from the financials and resource stocks.

For the day, the index slid 6.09 points or 0.17 percent to finish at 3,636.36 after trading between 3,617.70 and 3,672.15. The Shenzhen Composite Index fell 20.65 points or 0.85 percent to end at 2,396.01.

Among the actives, Industrial and Commercial Bank of China rose 0.19 percent, while Bank of China shed 0.62 percent, China Construction Bank climbed 1.23 percent, China Merchants Bank rallied 2.49 percent, Bank of Communications lost 0.42 percent, China Life Insurance jumped 1.96 percent, Jiangxi Copper spiked 2.33 percent, Aluminum Corp of China (Chalco) added 0.46 percent, Yanzhou Coal plunged 3.25 percent, Anhui Conch Cement plummeted 3.51 percent, PetroChina gained 0.67 percent, China Petroleum and Chemical (Sinopec) advanced 1.08 percent, China Shenhua Energy tanked 2.81 percent, Gemdale tumbled 1.85 percent, Poly Developments fell 0.34 percent, China Vanke perked 0.94 percent, Beijing Capital Development sank 0.87 percent and China Fortune Land dropped 2.61 percent.

The lead from Wall Street suggests a hint of support as stocks staged a recovery after opening sharply lower on Tuesday as the Dow and S&P managed to pick into positive territory.

The Dow added 15.66 points or 0.05 percent to finish at 31,537.35, while the NASDAQ fell 67.85 points or 0.50 percent to end at 13,465.20 and the S&P 500 rose 4.87 points or 0.13 percent to close at 3,881.37.

The early sell-off on Wall Street reflected concerns about the outlook for inflation and the potential for higher interest rates due to the recent increase in bond yields. The yields on ten-year notes and thirty-year bonds reached their highest intraday levels since the early days of the coronavirus pandemic earlier in the day.

However, selling pressure waned after Federal Reserve Chair Jerome Powell's remarks before the Senate Banking Committee. Powell reiterated interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.

In U.S. economic news, the Conference Board said consumer confidence has improved more than expected in February.

Crude oil prices ended slightly lower on Tuesday after surging in the previous session. West Texas Intermediate Crude oil futures for April ended down $0.03 at $61.67 a barrel.

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