The China stock market on Wednesday snapped the two-day winning streak in which it had gained more than 20 points or 0.6 percent. The Shanghai Composite Index now rests just above the 3,280-point plateau and it may take further damage on Thursday.
The global forecast for the Asian markets is mildly negative after the U.S. Federal Reserve raised its benchmark lending rate, as expected. The European and U.S. markets were slightly lower and the Asian markets figure to follow suit.
The SCI finished modestly lower on Wednesday as losses from the oil and insurance companies were mitigated by support from the property sector.
For the day, the index sank 9.69 points or 0.29 percent to finish at 3,280.95 after trading between 3,268.88 and 3,314.21. The Shenzhen Composite Index lost 13.72 points or 0.73 percent to end at 1,858.61.
Among the actives, China Vanke jumped 1.02 percent, while Gemdale gained 0.90 percent, China Life lost 0.33 percent, Ping An Insurance fell 0.36 percent, PetroChina slid 0.50 percent, China Petroleum and Chemical (Sinopec) advanced 0.29 percent, Bank of Communications added 0.16 percent, Industrial and Commercial Bank of China shed 0.61 percent and China Construction Bank, Agricultural Bank of China and Bank of China were unchanged.
The lead from Wall Street is soft as stocks saw considerable volatility in afternoon trading on Wednesday before ending the session modestly lower.
The Dow shed 44.96 points or 0.18 percent to 24,682.31, while the NASDAQ lost 19.02 points or 0.26 percent to 7,345.29 and the S&P 500 fell 5.01 points or 0.18 percent to 2,711.93.
The lower close came after the Fed announced its decision to raise interest rates by 25 basis points. A firm labor market and strength in the economy compelled the Fed to raise its benchmark interest rate to a range of 1.5 percent to 1.75 percent.
Perhaps more importantly, the Fed reiterated its plan to raise interest rates gradually. The central bank continues to project three rate hikes in 2018.
In economic news, the National Association of Realtors reported a much bigger than expected increase in existing home sales in February.
Crude oil prices rose Wednesday following a drop in U.S. oil inventories, while tensions between Iran and Saudi Arabia also lifted oil prices. May WTI oil gained $1.63 or 2.6 percent to settle at $65.17/bb, the highest since early February.
by RTTNews Staff Writer
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