The China stock market experienced another decline on Tuesday, following a brief respite from a two-day losing streak where it fell nearly 70 points or 2.2 percent. The Shanghai Composite Index currently hovers above the 3,110-point level and is anticipated to exhibit minimal movement on Wednesday.
Globally, the forecast for Asian markets remains mixed and flat, largely due to forthcoming economic data and uncertainties around interest rate forecasts. European markets declined, while U.S. markets showed mixed results, leading to a probable split outcome for Asian markets.
On Tuesday, the Shanghai Composite Index saw a modest drop as financial and property stocks suffered losses, although this was partially offset by gains in resource companies. The index fell by 14.47 points or 0.46 percent, closing at 3,109.57, with a trading range between 3,106.36 and 3,130.31. Similarly, the Shenzhen Composite Index fell 18.91 points or 1.08 percent, ending at 1,728.93.
In stock specifics, Industrial and Commercial Bank of China increased by 0.18 percent. Conversely, Bank of China decreased by 0.67 percent, China Merchants Bank dipped 0.88 percent, and Bank of Communications declined by 0.14 percent. China Life Insurance fell by 0.03 percent. In contrast, Jiangxi Copper rose by 0.19 percent, Aluminum Corp of China (Chalco) soared 1.50 percent, Yankuang Energy gained 0.20 percent, PetroChina rose by 1.46 percent, and China Petroleum and Chemical (Sinopec) climbed 1.23 percent. Huaneng Power slightly declined by 0.11 percent but China Shenhua Energy surged 2.14 percent. However, Gemdale plummeted 7.29 percent, Poly Developments dropped 1.89 percent, China Vanke decreased by 3.95 percent, and China Construction Bank remained flat.
Wall Street’s performance provided little direction as major indices opened and closed mixed on Tuesday. The Dow Jones Industrial Average dropped 216.73 points or 0.55 percent to 38,852.86. In contrast, the NASDAQ gained 99.09 points or 0.59 percent, reaching a record high of 17,019.88, while the S&P 500 inched up 1.32 points or 0.02 percent to close at 5,306.04.
The NASDAQ’s rise was driven by a significant increase in Nvidia shares (NVDA), which surged 7.1 percent to a record closing high. Conversely, a sharp decline in Merck (MRK) shares weighed on the Dow as the pharmaceutical giant tumbled by 2.6 percent to its lowest closing level in over a month.
In U.S. economic news, the Conference Board reported an unexpectedly substantial improvement in consumer confidence for May.
Oil prices climbed on Tuesday due to optimistic expectations for increased demand during the U.S. driving season and anticipated extensions of production cuts by OPEC into the next quarter. West Texas Intermediate Crude oil futures for July ended higher by $2.11 or 2.7 percent, closing at $79.83 per barrel.
