China Bourse May Hand Back Tuesday's Gains

(RTTNews) - The China stock market on Tuesday ended the three-day losing streak in which it had fallen more than 100 points or 2.5 percent. The Shanghai Composite Index now sits just beneath the 4,170-point plateau although it may head south again on Wednesday. The global forecast for the Asian markets is weak on continued concerns over the conflict in the Middle East and on the outlook got interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead. The SCI finished modestly higher on Tuesday following gains from the financial shares and property stocks. For the day, the index gained 38.01 points or 0.92 percent to finish at 4,169.54 after trading between 4,107.99 and 4,170.29. The Shenzhen Composite Index added 14.73 points or 0.51 percent to end at 2,877.17. Among the actives, Industrial and Commercial Bank of China advanced 0.97 percent, while Bank of China collected 0.54 percent, Agricultural Bank of China rose 0.30 percent, China Merchants Bank fell 0.27 percent, Bank of Communications perked 0.15 percent, China Life Insurance eased 0.12 percent, Jiangxi Copper tanked 2.90 percent, Aluminum Corp of China (Chalco) jumped 1.71 percent, Yankuang Energy retreated 1.32 percent, PetroChina was up 0.17 percent, China Petroleum and Chemical (Sinopec) was down 0.19 percent, Huaneng Power soared 4.27 percent, China Shenhua Energy added 0.48 percent, Gemdale spiked 2.52 percent, Poly Developments rallied 1.98 percent and China Vanke improved 0.82 percent. The lead from Wall Street is negative as the major averages opened lower on Tuesday and remained in the red throughout the trading day. The Dow slumped 322.24 points or 0.65 percent to finish at 49,363.88, while the NASDAQ tumbled 220.03 points or 0.84 percent to close at 25,870.71 and the S&P 500 sank 49.44 points or 0.67 percent to end at 7,353.61. The weakness on Wall Street came amid an extended surge by treasury yields, with the yield on the benchmark ten-year note jumping to its highest levels since January 2025. Concerns about elevated crude oil prices leading to a sustained acceleration in the pace of inflation continued to drive yields higher and increase the possibility of an interest rate hike. Crude oil prices took a breather on Tuesday following news the U.S. is halting its planned attacks on Iran, although the Strait of Hormuz remains closed. West Texas Intermediate crude for June was down $0.07 or 0.1 percent at $108.59 per barrel. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.