Continued Consolidation Called for Chinese Stock Market
(RTTNews) – The Chinese stock market ended lower in two consecutive sessions, slipping nearly 35 points or 1.9% along the way. The Shanghai Composite Index is now just below the 3,460 plateau and it is watching another red light for Wednesday’s trade.
The global outlook for Asian markets is negative due to geopolitical concerns over the escalating conflict between Russia and Ukraine. European and US markets were down and Asian markets are expected to follow a similar trajectory.
The SCI ended slightly lower on Tuesday following losses in financials and real estate stocks, while oil companies were up and other resources were mixed.
For the day, the index lost 33.47 points or 0.96% to end at 3,457.15 after trading between 3,437.67 and 3,473.39. The Shenzhen Composite Index fell 28.50 points or 1.23% to end at 2,297.30
Among assets, Industrial and Commercial Bank of China fell 0.83%, while Bank of China fell 0.31%, China Construction Bank lost 0.80%, China Merchants Bank slipped 1.04 %, Bank of Communications lost 0.40%, China Life Insurance fell 0.66%. Jiangxi Copper fell 0.50%, Aluminum Corp of China (Chalco) jumped 1.79%, Yankuang Energy jumped 3.80%, PetroChina jumped 4.13%, China Petroleum and Chemical (Sinopec ) rose 0.92%, Huaneng Power fell 4.47%, China Shenhua Energy gained 0.72%. percent, Gemdale was down 0.52 percent, Poly Developments added 0.67 percent, China Vanke fell 0.29 percent, Beijing Capital Development was down 0.52 percent and China Fortune Land fell 2.45 percent.
Wall Street’s advance suggests consolidation as major averages opened slightly lower on Tuesday but saw losses accelerate as the day wore on, ending firmly in the red.
The Dow Jones plunged 482.57 points or 1.42% to end at 33,596.61, while the NASDAQ fell 166.55 points or 1.23% to end at 13,381.52 and the S&P 500 fell 44.11 points or 1.01% to close at 4,304.76.
Wall Street’s weakness came after Russian President Vladimir Putin recognized two breakaway Ukrainian regions – Donetsk and Luhansk – as sovereign states and sent troops to those territories as “peacekeepers”.
Describing Russia’s latest actions as the start of an invasion of Ukraine, US President Joe Biden announced the first tranche of US sanctions against two major Russian financial institutions, VEB and the Russian Military Bank, and sovereign debt Russian, as well as Russian elites and their family members.
The UK also announced a first round of sanctions against Russia, targeting five Russian banks and three “very high net worth” individuals.
Oil prices rose sharply on Tuesday on supply concerns following Russia’s aggressive intervention in Ukraine. Widespread conflict in Ukraine is feared to cause a major disruption in crude supplies. West Texas Intermediate crude oil futures for April ended up $1.70 or 1.9% at $91.91 a barrel.
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