BEIJING: The China stock market has finished lower in two of three trading days since the end of the five-day winning streak in which it had advanced almost 60 points or 1.8 percent. The Shanghai Composite Index now rests just beneath the 3,155-point plateau, and the market figures to remain in that neighborhood again on Wednesday. The global forecast for the Asian markets suggests mild upside, with bargain hunting tempered by geopolitical concerns and a drop in the price of crude oil. The European markets were mixed and little changed, while the U.S. bourses were up – and the Asian markets figure to split the difference.
The SCI finished slightly lower on Tuesday following losses from the financials, properties and oil companies. Among the actives, Agricultural Bank of China shed 0.31 percent, while Bank of China lost 0.28 percent, Industrial and Commercial Bank of China fell 0.22 percent, Vanke dropped 0.34 percent, Gemdale slipped 0.24 percent, PetroChina retreated 0.47 percent, China Petroleum and Chemical skidded 1.34 percent and China Unicom eased 0.31 percent. The lead from Wall Street is positive as stocks finished modestly higher on Tuesday, although they handed back some of the gains following a solid open.
The Dow added 37.87 points or 0.2 percent to 20,090.29, while the NASDAQ rose 10.66 points or 0.2 percent to 5,674.22 and the S&P 500 gained 0.52 points or 0.1 percent to 2,293.08. Buying interest waned due to the recent increase in political uncertainty around the globe. Traders expressed concerns over the political situation in France and the potential for a “Frexit” as well as lingering uncertainty about President Donald Trump’s policies.
On the economic front, the Commerce Department said that the U.S. trade deficit narrowed more than expected in December. Also, the Federal Reserve said that consumer credit was up less than expected in December. Crude oil futures tumbled Tuesday amid signs that robust U.S. shale production will help offset OPEC’s supply cuts. A stable dollar also weighed on oil prices. WTI light sweet crude oil for March was down 84 cents or 1.6 percent to $52.17/bbl.
