The Chinese stock market has experienced an upward trend for three consecutive sessions, increasing by nearly 15 points, or 0.4%, during this period. As a result, the Shanghai Composite Index has climbed slightly above the 3,405-point mark. However, this momentum could face a pause on Tuesday.
Globally, the outlook for Asian markets is lukewarm, with expected profit-taking toward the year's end, particularly in technology stocks. European and U.S. markets declined, which suggests a similar opening for Asian exchanges.
On Monday, the Shanghai Composite Index ended modestly higher, with gains in financial and resource stocks being offset by a weaker property sector. Specifically, the index rose 7.18 points or 0.21% to close at 3,407.33, after fluctuating between 3,394.96 and 3,412.84. Conversely, the Shenzhen Composite Index fell by 6.47 points or 0.32% to settle at 2,008.49.
Among active stocks, Industrial and Commercial Bank of China gained 0.43%. Bank of China and Jiangxi Copper both advanced by 0.91%, China Construction Bank increased by 0.34%, and China Merchants Bank improved by 0.71%. Agricultural Bank of China climbed 1.13%, while China Life Insurance saw a 1.20% increase. Aluminum Corp of China (Chalco) surged 2.75%, Yankuang Energy rose 1.29%, PetroChina increased 0.90%, and China Petroleum and Chemical (Sinopec) accelerated by 1.05%. However, Huaneng Power fell 0.44%, China Shenhua Energy gained 1.40%, but Gemdale dropped 1.73%, Poly Developments declined 1.53%, and China Vanke decreased 2.52%.
Wall Street's opening on Monday was weak, with major averages remaining in negative territory throughout the day. The Dow declined by 418.48 points or 0.97% to 42,573.73, the NASDAQ fell 235.25 points or 1.19% to 19,486.79, and the S&P 500 decreased by 63.90 points or 1.07% to 5,906.94.
The downturn on Wall Street extends from last Friday's sell-off, as traders look to secure profits before year-end. Despite this, major indices are anticipated to record substantial gains for 2024, with the tech-heavy NASDAQ up nearly 30% for the year. Technology stocks managed to recover slightly from their lowest levels earlier in the day but still finished significantly lower. Semiconductor stocks showed notable weakness, with the Philadelphia Semiconductor Index dropping 1.9%.
The sell-off might have been amplified by below-average trading volume, as many traders were absent ahead of the New Year's holiday on Wednesday.
In the commodities market, oil prices reached a five-week peak on Monday, aided by recent data showing a larger-than-expected decrease in U.S. crude inventories and anticipated increased demand from China. West Texas Intermediate Crude futures for February rose by 0.6% to $70.99 per barrel.
Domestically, China is set to release December figures for manufacturing, non-manufacturing, and composite Purchasing Managers' Indexes (PMIs) from the National Bureau of Statistics later today. In November, these indices were recorded at 50.3, 50.0, and 50.8, respectively.
The material has been provided by InstaForex Company -
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