(RTTNews) – The China stock market bounced higher again, one session after ending the eight-day winning streak in which it had accelerated more than 390 points or 12 percent. The Shanghai Composite Index now sits just beneath the 3,445-point plateau although it’s likely to see renewed selling pressure on Tuesday.
The global forecast for the Asian markets is mixed to lower, with technology stocks expected to weigh heavily – while growing coronavirus concerns add to the negative sentiment. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The SCI finished sharply higher on Monday following gains from the oil companies and mixed performances from the financials, properties and insurance stocks.
For the day, the index advanced 59.96 points or 1.77 percent to finish at 3,443.29 after trading between 3,369.04 and 3,458.79. The Shenzhen Composite Index surged 78.39 points or 3.48 percent to end at 2,329.40.
Among the actives, Industrial and Commercial Bank of China eased 0.19 percent, while Bank of China collected 0.54 percent, China Construction Bank sank 0.76 percent, China Merchants Bank rose 0.13 percent, China Life Insurance skidded 1.52 percent, Ping An Insurance was up 0.02 percent, PetroChina perked 0.65 percent, China Petroleum and Chemical (Sinopec) advanced 0.97 percent, Baoshan Iron advanced 0.76 percent, Gemdale fell 0.33 percent, Poly Developments declined 0.75 percent and China Vanke added 0.10 percent.
The lead from Wall Street is negative as stocks opened sharply higher on Monday before the gains dissipated in afternoon trade and fell into the red.
The Dow added 10.50 points or 0.04 percent to finish at 26,085.80, while the NASDAQ plummeted 226.60 points or 2.13 percent to end at 10,390.84 and the S&P 500 sank 29.82 points or 0.94 percent to close at 3,155.22.
The sharp pullback by the NASDAQ came as tech giants like Netflix (NFLX), Tesla (TSLA), Amazon (AMZN) and Facebook (FB) showed substantial downturns after reaching new record intraday highs.
The afternoon sell-off on Wall Street also came as California Governor Gavin Newsom rolled back the state’s reopening following a recent spike in coronavirus cases.
The early rally on Wall Street followed upbeat news regarding a potential coronavirus vaccine. Pfizer (PFE) and BioNTech (BNTX) announced that two of the companies’ vaccine candidates received Fast Track designation from the U.S. Food and Drug Administration.
The upbeat news on the vaccine front came as the U.S. has reported more than 60,000 new coronavirus cases for three days in a row, with Florida seeing a record 15,299 new cases on Sunday.
Crude oil prices slipped on Monday as concerns about the energy demand outlook resurfaced amid worries about rising new coronavirus cases. West Texas Intermediate Crude oil futures for August fell $0.45 or 1.1 percent at $40.10 a barrel.
Closer to home, China will release June figures for imports, exports and trade balance later today. Imports are expected to sink 10.0 percent on year after losing 16.7 percent in May. Exports are called lower by an annual 1.5 percent after sliding 3.3 percent in the previous month. The trade balance is tipped to show a surplus of $58.6 billion, down from $62.39 billion a month earlier.
A Global Asset Management Seoul Korea Magazine