(RTTNews) – The Chinese stock market headed south again on Wednesday, a day after ending a two-day losing streak in which it lost more than 25 points or 0.7%. The Shanghai Composite Index now sits just below the 3,600 point plateau, although it may rise again on Thursday.
Global forecasts for Asian markets are grim following reports that the Omicron variant of the coronavirus has fueled a global peak in the disease. European and American markets have been mixed and changed little and Asian markets should follow suit.
The SCI ended slightly lower on Wednesday following losses in financial stocks, real estate stocks and resource companies.
For the day, the index lost 33.11 points or 0.91% to end at 3,597.00 after trading between 3,596.32 and 3,630.92. The Shenzhen Composite Index fell 20.41 points or 0.81% to close at 2,494.41 points.
Among assets, Industrial and Commercial Bank of China lost 0.43%, while Bank of China lost 0.65%, China Construction Bank fell 0.68%, China Merchants Bank fell 4.05% , Bank of Communications collected 0.22%, China Life Insurance fell 0.23%, Jiangxi Copper fell 0.40%, Aluminum Corp of China (Chalco) fell 2.58%, Yankuang Energy a dipped 4.88%, PetroChina slipped 0.41%, Huaneng Power slipped 5.46%, Gemdale fell 0.72%, Poly Developments slipped 0.99%, China Vanke fell 1.52%. , China Fortune Land fell 1.63% and China Petroleum and Chemical (Sinopec) and China Shenhua Energy were unchanged.
The Wall Street advance provides little clarity. All three major averages opened higher on Wednesday and the Dow Jones stayed that way throughout. The NASDAQ quickly fell and finished slightly below the line. The S&P 500 rebounded and finished slightly in the green.
The Dow Jones rose 90.42 points or 0.25% to end at 36,488.63, while the NASDAQ lost 15.51 points or 0.10% to close at 15,766.22 and the S&P rose 6.71 points or 0.14% to finish at 4,793.06.
Traders appeared reluctant to continue taking significant action following recent market strength, which has helped stocks recover from the selloff seen in reaction to early reports of the Omicron variant of the coronavirus.
While Omicron has contributed to an increase in the number of new coronavirus cases around the world, traders appear optimistic that the milder symptoms associated with the new strain will not lead to a significant economic downturn.
On the US economic front, the National Association of Realtors noted an unexpected drop in pending home sales in November.
Crude oil prices rose on Wednesday, extending recent gains after the Energy Information Administration said U.S. crude oil inventories fell more than expected last week. Crude oil for February delivery rose $ 0.58 or 0.8% to $ 76.56 a barrel.
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