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China Stock Market Tipped To Open In The Red

The China stock market on Wednesday ended the two-day winning streak in which it had gathered almost 100 points or 0.8 percent. The Shanghai Composite Index now rests just above the 3,675-point plateau and it's expected to open under pressure again on Thursday.

The global forecast for the Asian markets is negative on concerns for overall economic growth amid the latest coronavirus wave. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

The SCI finished slightly lower on Wednesday following losses from the properties, support from the financials and a mixed picture from the resource companies.

For the day, the index dipped 1.40 points or 0.04 percent to finish at 3,675.19 after trading between 3,661.00 and 3,695.32. The Shenzhen Composite Index fell 1.95 points or 0.08 percent to end at 2,492.59.

Among the actives, Industrial and Commercial Bank of China collected 0.42 percent, while Bank of China added 0.32 percent, China Construction Bank rallied 2.47 percent, China Merchants Bank sank 0.76 percent, Bank of Communications gained 0.66 percent, China Life Insurance improved 0.51 percent, Jiangxi Copper advanced 0.83 percent, Aluminum Corp of China (Chalco) skyrocketed 8.32 percent, Yanzhou Coal lost 0.71 percent, PetroChina perked 0.58 percent, China Petroleum and Chemical (Sinopec) climbed 1.12 percent, China Shenhua Energy spiked 2.49 percent, Gemdale dipped 0.18 percent, Poly Developments skidded 1.08 percent and China Vanke retreated 1.26 percent.

The lead from Wall Street suggests mild consolidation as the major averages opened lower on Wednesday and largely stayed that was throughout the session, ending with modest losses.

The Dow shed 68.93 points or 0.20 percent to finish at 35,031.07, while the NASDAQ sank 87.69 points or 0.57 percent to close at 15,286.64 and the S&P 500 fell 5.96 points or 0.13 percent to end at 4,514.07.

The weakness on Wall Street partly reflected concerns the rapid spread of the delta variant of the coronavirus may slow the global economic recovery.

Worries about the Federal Reserve scaling back its asset purchases also contributed to the selling pressure. The lower close by stocks also came after the Federal Reserve's Beige Book said U.S. economic growth downshifted slightly to a moderate pace in early July through August.

The Beige Book also said inflation was reported to be steady at an elevated pace, as half of the districts characterized the pace of price increases as strong, while half described it as moderate.

Crude oil futures settled higher on Wednesday as prices rose on reports of slow progress in the restoration of crude output in the Gulf of Mexico. West Texas Intermediate Crude oil futures for October ended up $0.95 or 1.4 percent at $69.30 a barrel.

Closer to home, China will release August figures for consumer and producer prices later this morning. Consumer prices are tipped to rise 0.5 on month and 1.0 percent on year after gaining 0.3 percent on month and 1.0 percent on year in July. Producer prices are called steady, higher by 9.0 percent on year.

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