BEIJING (dpa-AFX) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the four-day losing streak in which it had stumbled almost 175 points or 5.8 percent. The Shanghai Composite Index now rests just beneath the 2,860-point plateau and it's expected to take further damage on Tuesday.
The global forecast for the Asian markets is broadly negative thanks to heightening fears of a trade war and a drop in crude oil prices. The European and U.S. bourses were firmly in the red and the Asian markets are tipped to follow suit.
The SCI finished sharply lower on Monday following losses from the financials, properties and insurance companies.
For the day, the index fell 30.42 points or 1.05 percent to finish at 2,859.34 after trading between 2,857.87 and 2,908.62. The Shenzhen Composite Index slid 10.08 points or 0.63 percent to end at 1,587.31.
Among the actives, China Merchants Bank plummeted 3.32 percent, while Industrial and Commercial Bank of China tumbled 2.29 percent, China Construction Bank dropped 2.27 percent, Bank of China skidded 1.07 percent, China Life plunged 2.45 percent, Ping An Insurance retreated 2.10 percent, China Petroleum and Chemical (Sinopec) lost 0.80 percent, PetroChina added 0.14 percent, Baoshan Iron declined 2.65 percent and China Vanke plummeted 5.73 percent.
The lead from Wall Street is extremely weak as stocks showed a substantial move to the downside on Monday as the Dow closed lower for the ninth time in ten sessions.
The Dow tumbled 328.09 points or 1.33 percent to 24,252.80, the Nasdaq plunged 160.81 points or 2.091 percent to 7,532.01 and the S&P 500 slumped 37.81 points or 1.37 percent to 2,717.07.
Ongoing concerns about a global trade war fueled to the weakness on Wall Street after reports that President Donald Trump plans to ban Chinese companies from investing in U.S. technology firms and block additional tech exports to Beijing.
In economic news, the Commerce Department reported a bigger than expected rebound in new home sales in May.
Crude oil futures were lower Monday amid continued trade tensions and expectations for rising oil supplies. Also, the dollar further strengthened, denting most commodities as WTI oil for August fell 36 cents to $68.22 a barrel.
Copyright RTT News/dpa-AFX