FX.co ★ China Stock Market May Extend Monday's Losses

The Chinese stock market broke its two-day winning streak on Monday, in which it accumulated more than 25 points or 0.7 percent. The Shanghai Composite Index currently sits just below the 3,150-point plateau, with potential for further decline on Tuesday.

The week's international forecast suggests the Asian markets will have little movement ahead of key inflation data. European markets were down, U.S. markets were mixed and flat, and it's anticipated that the Asian markets will follow suit.

The Shanghai Composite Index (SCI) slightly fell on Monday due to losses from the oil and property sectors, while the financial sector showed mixed performances. The index decreased by 6.53 points or 0.21 percent, finishing at 3,148.02, and the Shenzhen Composite Index fell 16.98 points or 0.95 percent to end at 1,766.79.

Among the active players, Industrial and Commercial Bank of China rose 0.19 percent, Bank of China decreased 0.22 percent, China Merchants Bank advanced 0.81 percent, and Bank of Communications improved 0.72 percent. China Life Insurance fell 0.44 percent, while Huaneng Power increased 2.16 percent. Property stocks, including Gemdale, Poly Developments, and China Vanke, dropped by around 1.85 percent.

The U.S market opened higher on Monday but decreased as the day progressed, finishing with mixed results. The Dow dropped 81.33 points or 0.21 percent, finishing at 39,431.51, while the NASDAQ gained 47.37 points or 0.29 percent, finishing at 16,388.24. The S&P 500 decreased slightly by 1.26 points or 0.02 percent to 5,221.42.

Stocks were positively impacted initially by optimism about a potential interest rate cut by the Federal Reserve in the coming months. However, the possible impacts of key inflation data due this week on interest rates dampened buying interests during the session.

In other economic news, oil prices rose on Monday as expectations grew about the demand outlook following OPEC's decision to extend supply cuts into the second half of the year. The West Texas Intermediate Crude oil futures for June ended higher by $0.86 at $79.12 per barrel.