(RTTNews) - The China stock market has moved lower in four straight sessions, slumping more than 70 points or 2.4 percent along the way. The Shanghai Composite Index now sits just above the 2,930-point plateau although it may halt its slide on Tuesday.
The global forecast for the Asian markets is cautiously optimistic on hopes for an interest rate cut. The European markets were mixed and the U.S. bourses were modestly higher and the Asian markets are expected to split the difference.
The SCI finished modestly lower on Monday following mixed performances from the resource and property stocks, while the financials offered support.
For the day, the index shed 11.75 points or 0.40 percent to finish at 2,930.80 after trading between 2,924.33 and 2,951.15. The Shenzhen Composite Index stumbled 22.77 points or 1.25 percent to end at 1,805.44.
Among the actives, Industrial and Commercial Bank of China advanced 0.85 percent, while Bank of China spiked 2.05 percent, China Construction Bank collected 0.78 percent, China Merchants Bank perked 0.18 percent, Bank of Communications strengthened 1.22 percent, China Life Insurance shed 0.43 percent, Jiangxi Copper sank 0.76 percent, Aluminum Corp of China (Chalco) lost 0.59 percent, Yankuang Energy added 0.55 percent, PetroChina gained 0.45 percent, China Petroleum and Chemical (Sinopec) improved 0.76 percent, Huaneng Power eased 0.13 percent, China Shenhua Energy climbed 1.12 percent, Gemdale tumbled 1.94 percent, Poly Developments picked up 0.69 percent and China Vanke dropped 0.94 percent.
The lead from Wall Street is mostly positive as the major averages opened higher on Monday and largely stayed that way, although the Dow struggled to stay in the green.
The Dow rose 0.86 points or 0.00 percent to finish at 37,306.02, while the NASDAQ advanced 90.89 points or 0.61 percent to close at 14,904.81 and the S&P 500 gained 21.37 points or 0.45 percent to end at 4,740.56.
The major averages have moved higher for seven consecutive weeks due in part to optimism about the outlook for interest rates, with last week's rally coming as the Federal Reserve's latest projections hinted at three rate cuts next year.
However, several Fed officials have subsequently pushed back on investor hopes that rate cuts by the central bank are imminent. Nonetheless, CME Group's FedWatch Tool still suggests there is a good chance the Fed will lower interest rates by a quarter point in March.
In economic news, the National Association of Home Builders released a report showing homebuilder sentiment in the U.S. rebounded in December after falling for four consecutive months.
Oil prices rose sharply on Monday on rising tensions in the Middle Ease due to recent attacks on ships crossing the Red Sea, which have raised supply concerns. West Texas Intermediate Crude oil futures for January ended higher by $1.04 or 1.44 percent at $72.47 a barrel.
