BEIJING (dpa-AFX) - The China stock market has moved lower in five straight sessions, sinking almost 220 points or 7.4 percent along the way. The Shanghai Composite Index now rests just beneath the 2,780-point plateau although it's looking at a positive lead for Wednesday's trade.
The global forecast for the Asian markets is upbeat, with markets expected to see a technical rebound after days of heavy selling over coronavirus concerns. The European and U.S. markets were sharply higher and the Asian bourse are also tipped to open in the green.
The SCI finished modestly lower on Tuesday as losses from the properties and oil companies were offset by gains from the financial shares.
For the day, the index fell 9.61 points or 0.34 percent to finish at 2,779.64 after trading between 2,715.22 and 2,826.91. The Shenzhen Composite Index slid 7.28 points or 0.43 percent to end at 1,704.74.
Among the actives, Bank of China collected 0.56 percent, while China Construction Bank added 0.47 percent, China Merchants Bank and Ping An Insurance both rose 0.19 percent, China Life Insurance tumbled 2.89 percent, PetroChina shed 0.40 percent, China Petroleum and Chemical (Sinopec) dropped 0.86 percent, China Shenhua Energy skidded 1.44 percent, Gemdale sank 2.76 percent, Poly Developments lost 1.31 percent, China Vanke retreated 1.51 percent and Industrial and Commercial Bank of China was unchanged.
The lead from Wall Street is positive as stocks saw considerable volatility on Tuesday but moved sharply higher on the day, partly offsetting the huge losses from the previous session.
The Dow climbed 1,048.86 points or 5.20 percent to end at 21,237.38, while the NASDAQ jumped 430.19 points or 6.23 percent to 7,334.78 and the S&P 500 spiked 143.06 points or 6.00 percent to finish at 2,529.19.
The rally on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced levels following the sharp decline seen on Monday when the Dow saw its biggest percentage drop since the stock market crash of 1987.
Treasury Secretary Steven Mnuchin also said during a press briefing that the administration is hoping to get cash into Americans' pockets 'immediately.' Subsequent reports indicated the Trump administration is considering a fiscal stimulus package that could exceed $1 trillion.
In economic news, the Commerce Department reported an unexpected decrease in retail sales in February, and the Federal Reserve said industrial production rebounded more than anticipated last month. Also, the National Association of Home Builders said homebuilder confidence weakened more than anticipated in March.
Crude oil prices plunged sharply on Tuesday, extending recent losses to a fresh four-year low amid concerns about outlook for energy demand. West Texas Intermediate Crude oil futures for April ended down $1.75 or 6.1 percent at $26.95 a barrel, the lowest settlement price since February 2016.
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