The China stock market on Wednesday snapped the three-day winning streak in which it had jumped more than 90 points or 3.3 percent. The Shanghai Composite Index now rests just above the 2,775-point plateau and it may take further damage on Thursday.
The global forecast for the Asian is weak thanks to renewed trade war concerns and a tumble in the price of crude oil. The European and U.S. markets were down and the Asian bourses figure to follow suit.
The SCI finished sharply lower on Wednesday following losses from the financials, properties and oil and insurance stocks.
For the day, the index plummeted 49.86 points or 1.76 percent to finish at 2,777.77 after trading between 2,752.44 and 2,794.36. The Shenzhen Composite Index plunged 31.16 points or 1.96 percent to end at 1,554.62.
Among the actives, China Minsheng Bank declined 1.55 percent, while Bank of China shed 0.27 percent, Industrial and Commercial Bank of China lost 0.72 percent, China Construction Bank fell 0.59 percent, China Merchants Bank dropped 0.75 percent, China Life tumbled 2.55 percent, China Petroleum and Chemical (Sinopec) skidded 2.00 percent, PetroChina retreated 2.19 percent, China Shenhua Energy plunged 3.89 percent, China Vanke declined 2.86 percent, Gemdale plummeted 4.15 percent, Poly Real Estate lost 2.48 percent and Baoshan Iron was down 2.50 percent.
The lead from Wall Street is negative as stocks gave ground Wednesday after trending higher in recent days. With the drop on the day, the S&P 500 pulled back from its best closing level in five months.
The Dow slumped 219.21 points or 0.88 percent to 24,700.45, while the NASDAQ fell 42.59 points or 0.55 percent to 7,716.61 and the S&P 500 slid 19.82 points or 0.71 percent to 2,774.02.
The weakness on Wall Street came amid renewed concerns about the economic impact of a global trade war after President Donald Trump's administration proposed new tariffs on China - which has vowed to retaliate, which will not take effect until after a two-month review process.
In economic news, the Labor Department said producer prices increased more than expected in June, while core prices advanced in line with expectations.
Energy stocks came under pressure, moving lower along with the price of crude oil. Crude for August delivery plunged $3.73 to $70.38 a barrel amid concerns about an increase in supply.
by P2PNews Staff Writer