BEIJING (dpa-AFX) - The China stock market on Monday snapped the two-day winning streak in which it had collected almost 65 points or 2.1 percent. The Shanghai Composite Index now rests just above the 3,030-point plateau and it's in line for further damage on Tuesday.
The global forecast for the Asian markets suggests a sharply lower open due to coronavirus fears, although some bargain hunting may take hold as the day progresses. The European and U.S. bourses were firmly in the red and the Asian markets are expected to at least open in similar fashion.
The SCI finished modestly lower on Monday following losses from the financial shares, property stocks and resource companies.
For the day, the index fell 8.44 points or 0.28 percent to finish at 3,031.23 after trading between 3,007.36 and 3,042.18. The Shenzhen Composite Index jumped 26.01 points or 1.36 percent to end at 1,933.36.
Among the actives, Industrial and Commercial Bank of China shed 0.91 percent, while Bank of China lost 0.83 percent, China Construction Bank dropped 0.89 percent, China Merchants Bank skidded 1.66 percent, China Life Insurance retreated 1.74 percent, Ping An Insurance tumbled 2.02 percent, PetroChina sank 1.68 percent, China Petroleum and Chemical (Sinopec) declined 1.46 percent, Baoshan Iron was down 0.93 percent, Gemdale plummeted 2.26 percent, Poly Developments lost 1.57 percent and China Vanke dropped 1.20 percent.
The lead from Wall Street is brutal as stocks opened sharply lower on Monday and the losses accelerated as the day progressed.
The Dow fell 1,031.61 points or 3.56 percent to end at 27,960.80, while the NASDAQ lost 355.31 points or 3.71 percent to 9,221.28 and the S&P sank 111.86 points or 3.35 percent to 3,225.89.
The sell-off on Wall Street reflected concerns about the spread of the coronavirus amid a spike in the number of confirmed cases outside of China.
Traders shrugged off concerns about the virus earlier this month, helping propel stocks to new record highs amid optimism the outbreak would quickly be contained. But the continued spread of the virus along with several companies warning about the financial impact seems to have traders reassessing their positions.
Gold stocks were among the few groups that bucked the downtrend as the safe haven precious metal for April delivery soared $27.80 to $1,676.60 an ounce.
Crude oil prices plunged sharply on Monday amid rising concerns for the outlook for energy demand due to the rapidly spreading coronavirus outside China. West Texas Intermediate Crude oil futures for April ended down $1.95 or 3.7 percent at $51.43 a barrel.
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