The Chinese stock market has seen an impressive rise over three consecutive sessions, gathering almost 80 points or a 2.7 percent increase. Currently, the Shanghai Composite Index is approximately below the 3,040-point level. However, investors may start to cash out their profits on Tuesday.
Predictions for the international markets, especially in Asia, suggest a mild pullback in preparation for pivotal economic data expected later in the week. This data could influence interest rate forecasts. Both European and American markets showed a mix of stability and slight decline, with Asian markets predicted to follow suit.
On Monday, the Shanghai Composite Index (SCI) made moderate gains, with resource and energy stocks performing well. However, these gains were offset by weaker performance in the financial and property sectors.
Throughout the day, the SGI moved 12.28 points or 0.41 percent, ending at 3,039.31 after fluctuating between 3,007.68 and 3,040.34. The Shenzhen Composite Index climbed 3.12 points or 0.18 percent to close at 1,728.52.
Among the active stocks, Industrial and Commercial Bank of China decreased by 0.37 percent, while China Construction Bank fell 0.43 percent. Nevertheless, there were strong performances from companies like Aluminum Corp of China (Chalco) with a 1.63 percent increase and Yankuang Energy which soared a significant 4 percent.
Moving to Wall Street, the major averages displayed a negative trend as they surfaced lower on Monday. Despite a rally in the afternoon, they eventually sank back by the end of trading hours.
Contributing to the Wall Street's decline was a cautious stance from investors, triggered by several significant upcoming economic indicators. The market's main focus will be Federal Reserve Chair Jerome Powell's forthcoming congressional testimony, which could reveal hints about the future direction of interest rates. Additionally, Friday's highly anticipated job report for February from the Labor Department could also affect interest rate forecasts.
On Monday, oil futures ended on a lower note due to concerns about energy demand outlook following OPEC's extension of its output cuts till the end of the second quarter. The West Texas Intermediate Crude oil futures for April finished lower by $1.23 or 1.5 percent at 78.74 a barrel.
