China Stock Market May Hand Back Monday's Gains

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(RTTNews) – The China stock market on Monday wrote a finish to the four-day losing streak in which it had stumbled almost 60 points or 1.7 percent. The Shanghai Composite Index now rests just beneath the 3,600-point plateau although it’s expected to open under pressure again on Tuesday.

The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SCI finished modestly higher on Monday following gains from the resource stocks and properties, while the financials and oil companies were mixed.

For the day, the index gained 13.98 points or 0.39 percent to finish at the daily high of 3,593.52 after moving as low as 3,555.13. The Shenzhen Composite Index improved by 14.51 points or 0.59 percent to end at 2,467.32 Among the actives, Industrial and Commercial Bank of China rose 0.21 percent, while Bank of China shed 0.32 percent, China Construction Bank fell 0.33 percent, China Merchants Bank collected 0.37 percent, Bank of Communications added 0.42 percent, China Life Insurance tumbled 1.74 percent, Jiangxi Copper gained 0.63 percent, Aluminum Corp of China (Chalco) jumped 1.67 percent, Yankuang Energy rallied 2.21 percent, PetroChina perked 0.57 percent, China Petroleum and Chemical (Sinopec) dipped 0.23 percent, Huaneng Power plunged 3.63 percent, China Shenhua Energy climbed 1.20 percent, Gemdale slid 0.30 percent, Poly Developments spiked 1.98 percent and China Vanke advanced 1.23 percent.

The lead from Wall Street is mostly soft as the major averages opened sharply lower on Monday. They showed improvement as the session progressed, with the NASDAQ creeping up over the unchanged line.

The Dow dropped 162.79 points or 0.45 percent to finish at 36,068.87, while the NASDAQ rose 6.93 points or 0.05 percent to close at 14,942.83 and the S&P 500 dipped 6.74 points or 0.14 percent to end at 4,670.29.

The early weakness on Wall Street reflected lingering concerns about the economic impact of the Omicron variant of the coronavirus and the likelihood the Federal Reserve will raise interest rates in the near future.

Treasury yields have moved sharply higher in recent sessions, with the yield on the benchmark ten-year note reaching its highest levels since January of 2020.

The jump in yields comes amid a more hawkish tone from the Fed after the minutes of the central bank’s latest meeting indicated plans to accelerate monetary policy normalization.

Crude oil prices drifted lower Monday on concerns about the outlook for energy demand due to the rapid surge in the Omicron variant of the coronavirus across the globe. A firm dollar amid rising prospects for a series of interest rate hikes weighed as well on crude oil prices. West Texas Intermediate Crude futures for February slipped $0.67 or 0.9 percent at $78.23 a barrel.