The losing streak should continue for the Chinese stock market

(RTTNews) – China’s stock market has fallen in consecutive trading days, dropping more than 50 points or 1.6% along the way. The Shanghai Composite Index now sits just above the 3,310-point plateau and is poised to extend its losses on Tuesday.

Global forecast for Asian markets is weak ahead of quarterly results and fresh pandemic concerns. European and American markets were down and Asian stock exchanges should follow suit.

The SCI ended sharply lower on Monday on losses in properties, resource stocks and energy producers, while financials were mixed.

For the day, the index fell 42.49 points or 1.27% to end at 3,313.58 after trading between 3,297.00 and 3,341.10.

Among assets, Industrial and Commercial Bank of China collected 0.42%, while Bank of China gained 0.61%, China Construction Bank climbed 1.05%, China Merchants Bank fell 0.93% , Bank of Communications rose 0.20%, China Minsheng Bank gained 0.54%, China Life Insurance sank 0.73%, Jiangxi Copper fell 2.37%, Aluminum Corp of China (Chalco) fell 2.14%, Yankuang Energy plunged 3.37%, PetroChina slipped 1.16%, Huaneng Power lost 0.50%, China Shenhua Energy fell 6.18%, Gemdale fell 1.42%, Poly Developments fell 2.03%, China Vanke fell 1.56%, Beijing Capital Development fell 1.70%, China Fortune Land fell 0.96% and China Petroleum and Chemical (Sinopec) remained unchanged.

Wall Street’s lead is negative as major averages opened firmly lower on Monday and largely remained that way throughout the session.

The Dow Jones fell 164.31 points or 0.52% to end at 31,173.84, while the NASDAQ fell 262.71 points or 2.26% to end at 11,372.60 and the S&P 500 rose. fell 44.95 points or 1.15% to end at 3,854.43.

Renewed Covid concerns contributed to weakness on Wall Street as Shanghai reported its first case of the highly infectious BA.5 omicron subvariant, raising fears of further lockdowns.

Macau also closed all of its casinos on Monday for the first time in more than two years after an outbreak of coronavirus at the world’s largest gambling center.

Light trading activity may have exaggerated the downward move as some traders stayed away due to a lack of major US economic data and corporate earnings.

Crude oil prices fell on Monday on worries about the outlook for energy demand amid a surge in coronavirus cases in China, while the dollar jumped amid expectations of sharp interest rate hikes. Interest also weighed on prices. West Texas Intermediate crude oil futures for August ended down $0.70 or 0.7% at $104.90 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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