BEIJING (dpa-AFX) - The China stock market has finished lower in three straight sessions, plummeting more than 190 points or 5.5 percent in that span. The Shanghai Composite Index now rests just above the 3,380-point plateau and it's got another weak lead for Wednesday's trade.
The global forecast for the Asian markets is negative on concerns over the coronavirus and for the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The SCI finished sharply lower again on Tuesday with damage across the board on concerns that a regulatory crackdown by China would impacting a range of industries including private education and technology.
For the day, the index cratered 86.26 points or 2.49 percent to finish at 3,381.18 after trading between 3,380.28 and 3,483.87. The Shenzhen Composite Index tumbled 80.38 points or 3.33 percent to end at 2,331.43.
Among the actives, Industrial and Commercial Bank of China skidded 1.07 percent, while Bank of China fell 0.33 percent, China Construction Bank retreated 1.02 percent, China Merchants Bank surrendered 3.21 percent, Bank of Communications lost 0.46 percent, China Life Insurance tumbled 3.23 percent, Aluminum Corp of China (Chalco) cratered 8.72 percent, Yanzhou Coal surged 5.22 percent, PetroChina jumped 1.51 percent, China Petroleum and Chemical (Sinopec) shed 0.50 percent, China Shenhua Energy declined 1.39 percent, Gemdale tanked 3.53 percent, Poly Developments plunged 3.94 percent, China Vanke plummeted 5.62 percent, China Fortune Land dropped 5.15 percent and Jiangxi Copper was unchanged.
The lead from Wall Street is soft as the major averages opened lower on Monday and remained in the red throughout the session.
The Dow shed 85.79 points or 0.24 percent to finish at 35,058.51, while the NASDAQ plummeted 180.14 points or 1.21 percent to end at 14,660.58 and the S&P 500 sank 20.84 points or 0.47 percent to close at 4,401.46.
The pullback on Wall Street reflected uncertainty ahead of the Federal Reserve's monetary policy announcement later today. Traders are likely to pay close attention to the Fed's statement for any clues the central bank is considering scaling back its asset purchase program.
Negative sentiment may also have been generated in reaction to news that the CDC has recommend that people vaccinated for the coronavirus resume wearing masks indoors in areas of high transmission, particularly the South and West.
In economic news, the Commerce Department said new orders for U.S. manufactured durable goods saw continued growth in June. Also, the Conference Board said consumer confidence in the U.S. saw a slight improvement from an upwardly revised level in July.
Crude oil priced drifted lower on Tuesday after moving around the flat line for much of the day's session, with traders weighing demand prospects and looking ahead to weekly inventory data. West Texas Intermediate Crude futures for September dipped $0.26 or 0.4 percent at $71.65 a barrel.
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