FX.co ★ China Stocks Likely To Remain Rangebound On Wednesday

The Chinese stock market has witnessed unpredictable fluctuations in the past six trading days, following a three-day slide where it dropped more than 30 points or 1 percent. The Shanghai Composite Index currently hovers just below the 3,010-point mark and is predicted to exhibit limited movement on Wednesday.

Globally, Asian markets are forecasted to exhibit little movement, caught between enticing deals and concerns about interest rates. European markets have experienced a downturn while the U.S. markets have been mixed and stagnant, setting a likely precedent for Asian markets.

On Tuesday, the SCI concluded with a significant drop driven by losses from resource stocks, compounded by varied performances from financial shares and properties. The index fell by 50.31 points or 1.65 percent to wrap up at 3,007.07, after trading between 3,005.34 and 3,052.43. The Shenzhen Composite Index plunged 64.24 points or 3.77 percent to end at 1,638.44.

As for active participants, the Industrial and Commercial Bank of China made a 0.92 percent gain, followed by China Construction Bank which collected 0.42 percent, while China Merchants Bank dipped by 0.24 percent, and Bank of Communications rose by 0.30 percent. On the downside, Jiangxi Copper plunged 4.61 percent, and China Shenhua Energy strengthened 1.58 percent.

Wall Street provides little guidance, with major averages opening mixed on Tuesday and ending with marginal changes following a spell of volatility. Traders are caught between buying stocks at relatively low levels and worrying about interest rates outlook.

The yield on the benchmark ten-year note hit nearly six-month intraday highs after the Federal Reserve reported a consistent increase in U.S. industrial production in March. Fed Chief Jerome Powell hinted that rates would likely stay elevated due to a "lack of progress" in achieving the bank's inflation targets.

Lastly, the crude oil market showed uncertainty on Tuesday, with a slight decrease as U.S Treasury Secretary Janet Yellen revealed plans for new sanctions on Iran following its attack on Israel. Consequently, West Texas Intermediate crude for May delivery dipped $0.05 or 0.1 percent to $85.36 a barrel.