BEIJING (dpa-AFX) - The China stock market moved back to the downside again on Monday, one session after it had snapped the seven-day losing streak in which it had surrendered almost 300 points or 10.2 percent. The Shanghai Composite Index now rests just above the 2,660-point plateau and the losses may accelerate on Tuesday.
The global forecast for the Asian markets remains negative on concerns about the effect of the coronavirus on the global economy. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.
The SCI finished sharply lower on Monday following losses from the financial shares, property stocks and oil and insurance companies.
For the day, the index sank 85.45 points or 3.11 percent to finish at 2,660.17 after trading between 2,656.50 and 2,703.33. The Shenzhen Composite Index tumbled 72.58 points or 4.26 percent to end at 1,631.88.
Among the actives, PetroChina fell 2.04 percent, while China Petroleum and Chemical (Sinopec) and Industrial and Commercial Bank of China both shed 1.77 percent, Bank of China lost 1.71 percent, China Construction Bank sank 2.37 percent, China Merchants Bank retreated 2.84 percent, China Life Insurance skidded 3.83 percent, Ping An Insurance declined 3.25 percent, China Shenhua Energy dipped 0.74 percent, Gemdale plunged 5.30 percent, Poly Developments tanked 2.83 percent and China Vanke plummeted 4.84 percent.
The lead from Wall Street is soft with a dose of volatility as stocks saw wild swings again on Monday. The NASDAQ peeked into positive territory a couple of times, but all three major averages finished in the red.
The Dow sank 754.38 points or 3.93 percent to finish at 18,419.60, while the NASDAQ lost 56.67 points or 0.82 percent to 6,822.85 and the S&P 500 fell 86.44 points or 3.75 percent to 2,21848.
After opening sharply lower, the markets got a lift when the Federal Reserve announced extensive new measures to support the economy - saying that it is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.
The measures include an unlimited expansion of the Fed's asset purchases, with the central bank saying it will purchase Treasuries and mortgage-backed securities in unspecified large amounts.
But the markets resumed their downward march in afternoon trade as the virus continues to spread.
Crude oil prices climbed higher on Monday, reacting positively to the Federal Reserve's announcement of extensive new measures to support the economy. West Texas Intermediate Crude oil futures for May ended up $0.73 or 3.2 percent at $23.36 a barrel.
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