Further consolidation expected for the Chinese stock market
(RTTNews) – The Chinese stock market has finished lower in three consecutive sessions, losing more than 50 points or 1.5% along the way. The Shanghai Composite Index is now just above the 3,265 plateau and it could extend its losses on Thursday.
The global forecast for Asian markets is mixed on the downside due to fears of continued policy tightening and a global recession. European and American markets were down and Asian markets are expected to open similarly.
The SCI ended sharply lower on Wednesday following losses in financial stocks, real estate stocks and resource companies.
For the day, the index fell 39.52 points or 1.20% to end at 3,267.20 after trading between 3,266.54 and 3,311.02. The Shenzhen Composite Index fell 27.47 points or 1.28% to end at 2,119.82.
Among assets, Industrial and Commercial Bank of China fell 0.21%, while Bank of China lost 0.62%, China Construction Bank lost 0.50%, China Merchants Bank fell 2.53% , Bank of Communications and China Life both fell 0.60%, Jiangxi Copper slipped. 1.18%, Aluminum Corporation of China fell 1.47%, Yankuang Energy fell 2.65%, China Petroleum & Chemical (Sinopec) fell 0.98%, Gemdale fell 1.85%, Poly Developments fell 1.41%, China Vanke fell 1.51%, China Fortune Land plunged 3.36%. percent, Beijing Capital Development weakened 1.43 percent, and Huaneng Power was unchanged.
Wall Street’s advance ended up slightly negative as major averages opened lower on Wednesday, then spent most of the day in the green before falling back into negative territory at the close.
The Dow Jones lost 47.12 points or 0.15% to end at 30,483.13, while the NASDAQ lost 16.22 points or 0.15% to close at 11,053.08 and the S&P 500 fell. down 4.90 points or 0.13% to end at 3,759.89.
The choppy trade on Wall Street came as traders reacted to testimony by Federal Reserve Chairman Jerome Powell before the Senate Banking Committee. Powell said the Fed plans to continue to move quickly to fight inflation, but argued the U.S. economy is strong enough to handle tighter monetary policy.
Powell said the pace of future interest rate hikes will depend on incoming data and the changing outlook for the economy and suggested the Fed will need to see “compelling evidence” that inflation is slowing before it begins. to scale back its monetary policy tightening plans.
Crude oil futures fell on Wednesday amid worries about the outlook for energy demand as global growth slowed following steep interest rate hikes by central banks. West Texas Intermediate crude oil futures for August ended down $3.33 or 3% at $106.19 a barrel, the lowest settlement in six weeks.
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