Further consolidation expected for the Chinese stock market
(RTTNews) – China’s stock market has fallen in four consecutive sessions, losing more than 115 points or 3.4% over the period. The Shanghai Composite is now just above the 3,370 plateau and the losing streak will continue on Tuesday.
Global forecasts for Asian markets suggest further consolidation thanks to the ongoing Russian invasion of Ukraine and soaring crude oil prices. European and American markets were down and Asian exchanges are expected to open similarly.
The SCI ended sharply lower on Monday following losses in financial stocks and energy producers, while real estate and resource stocks were mixed.
For the day, the index fell 74.79 points or 2.17% to end at 3,372.86 after trading between 3,360.74 and 3,438.56. The Shenzhen Composite Index lost 61.23 points or 2.70% to end at 2,203.41.
Among assets, Industrial and Commercial Bank of China fell 1.48%, while Bank of China lost 0.63%, China Construction Bank slipped 1.14%, China Merchants Bank fell 3.98 %, Bank of Communications fell 1.63%, China Life Insurance fell 3.07%. Jiangxi Copper gained 0.44%, Aluminum Corp of China (Chalco) jumped 2.67%, Yankuang Energy fell 1.15%, PetroChina jumped 2.24%, China Petroleum and Chemical (Sinopec) lost 0.68%, Huaneng Power jumped 1.93%, China Shenhua Energy fell 0.62%. %, Gemdale climbed 1.15%, Poly Developments rose 0.82%, China Vanke fell 0.91%, China Fortune Land fell 1.28% and Beijing Capital Development strengthened by 1.21%.
Wall Street’s advance is broadly negative as major averages opened lower on Monday and saw losses accelerate as the session progressed, ending near their worst levels for the day.
The Dow Jones fell 797.42 points or 2.37% to end at 32,817.38, while the NASDAQ plunged 482.48 points or 3.62% to close at 12,830.96 and the S&P 500 fell 127.78 points or 2.95% to end at 4,201.09.
Worries over the impact of the recent oil price spike helped sell off on Wall Street as crude for April delivery surged on Monday, boosted by concerns over global oil supply amid talks that the United States and its Western allies are likely to impose a ban on Russian oil. West Texas Intermediate crude oil futures for April ended up $3.72 or 3.2% at $119.40 a barrel.
Rising crude oil prices are already impacting prices at the pump, with the national average for a gallon of gasoline hitting a 14-year high of $4,065. Rising gasoline prices are expected to weigh on consumers, who are already struggling with higher prices due to high inflation.
All of this comes as the Federal Reserve prepares to raise interest rates by at least a quarter point at its monetary policy meeting next week.
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