The Chinese stock market has experienced a downturn over the past two sessions, shedding more than 75 points, equivalent to a 2.4% decline. The Shanghai Composite Index now hovers slightly above the 3,385-point mark, although it's anticipated to receive support on Tuesday. The global outlook for Asian markets is mixed, with positive cues expected primarily from technology sectors. European markets saw a decline, while U.S. markets presented mixed results; Asian markets are projected to mirror this trend. On Monday, the Shanghai Composite experienced a minor decline, as losses in the property sector were balanced by gains in financial stocks and mixed outcomes in the energy sector. By the end of the day, the index decreased by 5.55 points or 0.16%, closing at 3,386.33, after fluctuating between 3,376.54 and 3,401.93. The Shenzhen Composite Index fell by 21.33 points or 1.03%, ending at 2,049.10.
In terms of individual performances, Industrial and Commercial Bank of China increased by 2.19%, Bank of China rose by 1.54%, and China Construction Bank gained 1.81%. China Merchants Bank advanced by 1.18%, and Agricultural Bank of China grew by 2.20%. Conversely, China Life Insurance fell by 1.90%, Jiangxi Copper decreased by 1.36%, Aluminum Corp of China (Chalco) dropped by 1.97%, Yankuang Energy slightly dipped by 0.14%, while PetroChina surged by 2.05%. China Petroleum and Chemical (Sinopec) rose by 1.42%, and both Huaneng Power and China Shenhua Energy rallied with 2.00% gains. In contrast, Gemdale plummeted by 4.45%, Poly Developments plunged by 3.46%, and China Vanke stumbled by 2.14%.
In the U.S., Wall Street has shown cautious optimism, with major indices opening and closing in mixed territory on Monday. The Dow Jones Industrial Average decreased by 110.58 points or 0.25%, ending at 43,717.48. In contrast, the NASDAQ surged by 247.17 points or 1.24% to close at a new record of 20,173.89, and the S&P 500 added 22.99 points or 0.38%, closing at 6,074.08.
The general upward movement on Wall Street was driven by optimism regarding interest rate prospects ahead of the Federal Reserve's upcoming monetary policy decision. The Fed is anticipated to continue its interest rate cuts, with the CME Group's FedWatch Tool indicating a 99.1% probability of a further 25-basis-point reduction. The NASDAQ's rise was fueled by strong performances in the semiconductor sector, with the Philadelphia Semiconductor Index jumping by 2.1%. Networking stocks also showed significant strength, bolstering the NYSE Arca Networking Index by 2.0% to a new record high.
Despite this optimism, buying interest was somewhat tempered due to persistent inflationary pressures raising concerns that the Fed may slow the pace of rate cuts next year. In economic news, the Federal Reserve Bank of New York reported a significant decline in its regional manufacturing activity index for December.
Additionally, crude oil prices declined on Monday due to concerns about demand following weak economic data from China and ongoing tariff threats. West Texas Intermediate Crude oil futures for January settled at $70.71 per barrel, down by $0.58.
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