May 9, 2022 9:00PM EDT
(RTTNews) – The China stock market bounced higher again on Monday, one session after ending the four-day winning streak in which it had surged almost 180 points or 6 percent. The Shanghai Composite Index now rests just above the 3,000-point plateau although it figures to head south again on Tuesday,
The global forecast for the Asian markets is soft on concerns over economic growth and the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are tipped to open in similar fashion.
The SCI finished slightly higher on Monday following mixed performances from the financial shares, resource stocks and properties.
For the day, the index rose 2.58 points or 0.09 percent to finish at 3,004.14 after trading between 2,983.61 and 3,015.94. The Shenzhen Composite Index added 6.53 points or 0.35 percent to end at 1,865.92.
Among the actives, Industrial and Commercial Bank of China collected 0.42 percent, while China Construction Bank shed 0.50 percent, China Merchants Bank plunged 3.80 percent, Bank of Communications eased 0.20 percent, China Life Insurance jumped 1.95 percent, Jiangxi Copper retreated 1.13 percent, Aluminum Corp of China (Chalco) climbed 1.12 percent, Yankuang Energy tanked 3.13 percent, PetroChina advanced 0.95 percent, China Petroleum and Chemical (Sinopec) added 0.47 percent, Huaneng Power rallied 2.79 percent, China Shenhua Energy tumbled 2.08 percent, Gemdale gained 0.54 percent, Poly Developments sank 0.73 percent, China Vanke dipped 0.05 percent, China Fortune Land skyrocketed 9.92 percent, Beijing Capital Development surged 3.18 percent and Bank of China was unchanged.
The lead from Wall Street is broadly negative as the major averages opened sharply lower on Monday and the losses only accelerated as the day progressed.
The Dow plunged 653.67 points or 1.99 percent to finish at 32,245.70, while the NASDAQ plummeted 521.41 points or 4.29 percent to close at 11,623.25 and the S&P 500 tumbled 132.10 points or 3.20 percent to end at 3,991.24.
Traders seem worried aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Rising treasury yields also contributed to the selloff.
The extended sell-off on Wall Street also came as traders looked ahead to inflation data later this week. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.
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Source : Nasdaq