On Tuesday, the China stock market halted its two-day decline, during which it had lost more than 50 points, or 1.9%. The Shanghai Composite Index now hovers just above the 2,740-mark and is expected to maintain this level on Wednesday.
The global outlook for Asian markets is mixed and relatively flat, influenced by anticipation of key inflation data set to be released later this week. While European markets experienced a downturn, U.S. markets displayed a more variable performance, a pattern Asian markets are likely to emulate.
The Shanghai Composite Index (SCI) saw a slight uptick on Tuesday, driven by gains in financial and oil sectors, even though these were offset by weaknesses in resource and property stocks. The SCI rose by 7.70 points, or 0.28%, to close at 2,744.19, after fluctuating between 2,718.63 and 2,750.12. Similarly, the Shenzhen Composite Index increased by 4.01 points, or 0.27%, ending the day at 1,500.24.
Notable market movements included:
- Industrial and Commercial Bank of China climbing by 1.07%
- Bank of China rallying with a 2.56% increase
- China Construction Bank surging by 2.53%
- China Merchants Bank dipping slightly by 0.17%
- Agricultural Bank of China jumping by 1.77%
- China Life Insurance posting a modest gain of 0.12%
- Jiangxi Copper declining by 0.64%
- Aluminum Corp of China (Chalco) losing 0.63%
- Yankuang Energy dropping by 0.99%
- PetroChina improving by 1.02%
- China Petroleum and Chemical (Sinopec) accelerating by 1.88%
- Huaneng Power easing by 0.15%
- China Shenhua Energy gaining 0.73%
- Both Gemdale and China Vanke skidding by 1.10%
- Poly Developments slumping by 1.19%
Stateside, Wall Street adopted a cautiously optimistic stance. Major indices started mixed on Tuesday, oscillated throughout the trading day, and ended on divergent notes. The Dow Jones Industrial Average fell by 92.63 points, or 0.23%, to close at 40,736.96. Meanwhile, the NASDAQ rose by 141.28 points, or 0.84%, finishing at 17,025.88, and the S&P 500 added 24.47 points, or 0.45%, ending at 5,495.52.
The day's volatility was driven by anticipation of crucial consumer and producer price inflation data, scheduled for release on Wednesday and Thursday, respectively. These figures could influence future interest rate projections as the Federal Reserve prepares for its monetary policy meeting next week. Consensus suggests that the Fed will begin lowering interest rates, though it's debated whether the cut will be 25 or 50 basis points.
Crude oil prices tumbled on Tuesday, influenced by looming inflation data and global economic health concerns. West Texas Intermediate crude for October delivery dropped by $2.43, or 3.54%, settling at $66.28 per barrel.
