The China stock market has experienced consecutive declines, shedding nearly 40 points or 1.4 percent over recent trading days. The Shanghai Composite Index now hovers slightly above the 2,800 mark, with further losses anticipated on Wednesday.The global economic outlook has cast a shadow over Asian markets, following significant downturns in both European and U.S. markets, leading to expectations of similar declines in Asian bourses.On Tuesday, the Shanghai Composite Index saw modest losses, primarily driven by declines in the financial sector, although gains in the property sector provided some offset. The index dropped 8.06 points or 0.29 percent, closing at 2,802.98, within a daily range of 2,794.91 to 2,814.90. Conversely, the Shenzhen Composite Index gained 16.03 points or 1.06 percent, ending the day at 1,530.73.Notable stock performances included Industrial and Commercial Bank of China, which fell by 3.03 percent, and Bank of China, which decreased by 2.32 percent. China Construction Bank declined by 2.14 percent, and China Merchants Bank dropped by 0.97 percent. Agricultural Bank of China saw a significant decline of 4.48 percent, while China Life Insurance edged up by 0.12 percent. Jiangxi Copper and Aluminum Corp of China (Chalco) increased by 0.40 percent and 0.89 percent, respectively. Yankuang Energy slipped by 0.96 percent, PetroChina plummeted 3.33 percent, and China Petroleum and Chemical (Sinopec) retreated by 4.30 percent. Huaneng Power and China Shenhua Energy fell by 1.44 percent and 2.19 percent, respectively. In the property sector, Gemdale surged by 8.33 percent, Poly Developments rose by 0.51 percent, and China Vanke rallied by 1.56 percent.Wall Street provided a grim forecast as major indices opened in negative territory and worsened throughout the trading session. The Dow Jones Industrial Average dropped by 626.15 points or 1.51 percent to close at 40,836.93. The NASDAQ fell by 577.33 points or 3.26 percent, ending at 17,136.30, and the S&P 500 tumbled by 119.47 points or 2.12 percent, finishing at 5,528.93.The sell-off on Wall Street was influenced by a report from the Institute for Supply Management, which indicated a continued decline in U.S. manufacturing activity for August. Additionally, a surprising report from the Commerce Department revealed a modest decrease in U.S. construction spending in July.Market sentiment was further dampened by traders capitalizing on prior session gains amidst ongoing uncertainty regarding interest rate trends. While the Federal Reserve is broadly expected to reduce rates at its upcoming meeting, there is debate over the magnitude of the cuts. According to the CME Group’s FedWatch Tool, there is a 63 percent likelihood of a quarter-point rate cut and a 37 percent chance of a half-point rate cut later this month.Oil prices saw a sharp drop, hitting a nine-month low due to anticipations of increased supply from OPEC. West Texas Intermediate Crude oil futures for October closed down $3.21 or 4.4 percent at $70.34 per barrel.The material has been provided by InstaForex Company – www.instaforex.com
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