FX.co ★ China Stock Market May End Losing Streak

The Chinese stock market has undergone a decline in two consecutive sessions, losing almost 30 points or around 1 percent. Now, the Shanghai Composite Index is marginally above the 3,040-point zone, potentially receiving backing on Tuesday. The overall prediction for Asian markets is optimistic due to bargain hunting, particularly within the technology sector, which was recently hit hard. Following the rise in both European and U.S. markets, Asian markets are projected to follow a similar trend.

Meanwhile, the Shanghai Composite Index (SCI) experienced a marginal decrease on Monday due to losses within the financial, property, and oil sectors. As per the day's data, the SCI dropped 20.67 points or 0.67 percent, ending the day at 3,044.60 after fluctuating between 3,042.54 and 3,078.42. The Shenzhen Composite Index decreased by 8.30 points or 0.49 percent, concluding the day at 1,678.26.

In more detailed market activity, several major companies faced varying degrees of change. Industrial and Commercial Bank of China and Bank of China declined approximately 1.27 percent each. China Construction Bank saw a decrease of 0.68 percent, China Merchants Bank by 0.83 percent, and Bank of Communications by 0.87 percent. Jiangxi Copper plummeted 3.27 percent, Yankuang Energy by 4.71 percent, PetroChina by 2.66 percent, China Petroleum and Chemical (Sinopec) by 2.55 percent, and China Shenhua Energy plunged 3.80 percent.

On the other side of the globe, Wall Street showed promising signs as the significant market averages opened higher on Monday, maintaining its optimistic demeanor throughout the business day. The Dow rose by 253.58 points or 0.67 percent, ending up at 38,239.98, while NASDAQ jumped up 169.30 points or 1.11 percent and brought its closing day number to 15,451.31. The primed S&P 500 gained by 0.43.37 points, marking a gain of 0.87 percent and finishing the day at 5,010.60.

The emergence of Wall Street ahead came with the easing of fears of an expansive Middle Eastern conflict, with Iran and Israel conducting ‘measured’ counterattacks designed to avoid any casualties. In anticipation of several comprehensive U.S. economic reports, investors have been active in securing bargains.

This week is of particular interest to keen investors as several large companies like Tesla, Boeing, IBM, Caterpillar, Honeywell, Alphabet, Intel, Microsoft, Chevron, and Exxon Mobil would unveil their quarterly results. Finally, owing to the apprehensions regarding global oil demand and recent data showing a significant leap in U.S. crude inventories, oil prices saw a slight fall on Monday with West Texas Intermediate Crude oil futures for May going down $0.29 or 0.34 percent at $82.85 a barrel.