The Chinese stock market has experienced a decline over the past two sessions, with the Shanghai Composite Index (SCI) falling by nearly 15 points, or 0.5%, in that period. As of Tuesday, the SCI hovers just above the 3,365-point mark, and the outlook for another weak trading day persists. The global market sentiment is broadly negative, driven by fears of an impending recession and worries about the overall health of the global economy. Both European and U.S. markets closed sharply lower, signaling further pressure on Asian markets as they prepare to open.
On Monday, the SCI managed a slight gain, buoyed by positive movement in resource stocks but offset by declines in the financial and property sectors. The index dipped by 6.38 points, or 0.19%, to close at 3,366.16, with intraday fluctuations between 3,347.19 and 3,375.80. Meanwhile, the Shenzhen Composite Index saw a marginal increase of 0.30 points, or 0.01%, closing at 2,080.57. Among notable stock movements, Industrial and Commercial Bank of China saw a decline of 0.88%, China Construction Bank fell by 0.59%, and China Merchants Bank dropped 1.15%. Other companies like Jiangxi Copper and Aluminum Corp of China (Chalco) and Yankuang Energy posted gains of 0.78% and 1.44%, respectively. However, property companies such as Gemdale and Poly Developments faced steep declines of 2.07% and 1.25%.
The market sentiment mirrors the turmoil in the U.S., where the major indexes closed significantly lower on Monday. The Dow Jones Industrial Average plunged 890.01 points, or 2.08%, to settle at 41,911.71, while the NASDAQ tumbled 727.90 points, or 4.00%, closing at 17,468.32. The S&P 500 also dropped 155.64 points, or 2.70%, to end at 5,614.56. The losses in the U.S. market reflect growing concerns about the future of economic growth and corporate earnings, exacerbated by President Donald Trump’s rhetoric on tariffs and the potential for a recession.
With critical economic data expected later this week, including reports on inflation, consumer sentiment, and inflation expectations, market participants are entering a phase of heightened caution. Additionally, oil prices continued to slide, with West Texas Intermediate crude futures falling by $1.01, or 1.5%, to settle at $66.03 a barrel—the lowest point in six months. These developments underscore ongoing fears about the global economic outlook and the potential for reduced demand across industries.
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