The China stock market has experienced a decline for three consecutive days, collectively dropping over 100 points, equating to a 3 percent decrease. As it stands, the Shanghai Composite Index has settled just above the 3,360 threshold, and projections suggest it will face another downward opening on Wednesday.
Globally, a subdued outlook prevails for the Asian markets as the FOMC's interest rate decision is awaited. Both European and U.S. markets have seen declines, with Asian markets expected to follow suit; however, some bargain hunting might occur later in the day.
On Tuesday, the SCI saw a moderate fall, influenced by losses in property stocks and mixed results from the financial and resource sectors. The index decreased by 24.85 points, or 0.73 percent, closing at 3,361.49, after fluctuating between 3,357.77 and 3,396.21 throughout the day. The Shenzhen Composite Index also fell, losing 35.31 points, or 1.72 percent, concluding at 2,013.78.
Among the actively traded stocks, Industrial and Commercial Bank of China dipped by 0.31 percent, while Bank of China edged up 0.38 percent. China Construction Bank and China Merchants Bank gained 0.47 percent and 0.29 percent, respectively. Conversely, Agricultural Bank of China slipped by 0.20 percent, China Life Insurance advanced by 0.48 percent, Jiangxi Copper rose 0.14 percent, while Aluminum Corp of China (Chalco) fell 0.81 percent. Yankuang Energy decreased by 0.55 percent, PetroChina added 0.36 percent, China Petroleum and Chemical (Sinopec) eased down 0.16 percent, Huaneng Power dropped 1.26 percent, China Shenhua Energy fell 1.50 percent, Gemdale retreated 1.62 percent, Poly Developments dropped 0.95 percent, and China Vanke shed 1.09 percent.
The outlook from Wall Street was similarly weak, as major indices opened lower on Tuesday and maintained their downward trajectory throughout the session.
The Dow Jones Industrial Average decreased by 267.58 points, or 0.61 percent, closing at 43,449.90. The NASDAQ fell by 64.83 points, or 0.32 percent, to end at 20,109.06, while the S&P 500 declined by 23.47 points, or 0.39 percent, finishing at 6,050.61.
The decline in Wall Street primarily stemmed from a pullback in technology stocks, especially those in the networking and semiconductor segments, which had previously propelled market gains. Stocks in telecom, financial, housing, and steel sectors also saw declines.
Meanwhile, traders keenly anticipate the Federal Reserve's imminent monetary policy announcement. With widespread expectations of another quarter-point rate cut, investor focus will be on the Fed's accompanying statement and updated economic projections, particularly rate forecasts.
Oil prices also took a hit on Tuesday amid concerns regarding future global demand and potential supply surpluses in the coming year. West Texas Intermediate crude oil futures for January saw a decrease of $0.63, or 0.9 percent, closing at $70.08 per barrel.
The material has been provided by InstaForex Company -
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