FX.co ★ China Stock Market May Reverse Tuesday's Losses

On Tuesday, the China stock market halted its two-day winning streak, during which it had gained more than 40 points or 1.2%. The Shanghai Composite Index currently sits just above the 3,285 mark, with potential to rally again on Wednesday.

The outlook for Asian markets remains ambiguous, though technology shares could offer a slight uplift. European markets faced declines, while U.S. exchanges presented a mixed picture, suggesting that Asian markets may exhibit varied performances.

The Shanghai Composite Index experienced a sharp decline on Tuesday, driven by losses in resource, energy, and property sectors, while the financial sector showed mixed results. The index fell by 35.79 points or 1.08% to close at 3,286.41, moving within a range of 3,284.21 to 3,340.46 during the session. Additionally, the Shenzhen Composite Index dropped 29.65 points or 1.48% to finish at 1,972.93.

In terms of individual stocks, Industrial and Commercial Bank of China slipped 0.16%, whereas Bank of China rose 0.41%. China Merchants Bank saw an increase of 0.21%, and Agricultural Bank of China gained 0.63%. Meanwhile, China Life Insurance inched up by 0.14%. Conversely, Jiangxi Copper fell by 2.54%, Aluminum Corp of China (Chalco) decreased by 2.68%, and Yankuang Energy saw a decline of 2.87%. PetroChina pulled back by 2.03%, China Petroleum and Chemical (Sinopec) plunged 3.26%, and Huaneng Power fell 2.81%. Additionally, China Shenhua Energy decreased by 0.29%, Gemdale fell 1.95%, Poly Developments dropped 2.66%, China Vanke retreated 2.77%, while China Construction Bank remained unchanged.

Wall Street's performance offered little clarity, with major indices opening lower on Tuesday and mostly trading sideways before ending with mixed results. The Dow Jones Industrial Average fell by 154.52 points or 0.36% to end at 42,233.05. In contrast, the NASDAQ Composite advanced by 145.56 points or 0.78% to reach a record 18,712.75, and the S&P 500 moved up by 9.40 points or 0.16% to conclude at 5,832.92.

The NASDAQ's rise came ahead of anticipated earnings reports from key technology firms, including Alphabet (Google's parent company), Advanced Micro Devices (AMD), Meta Platforms, Microsoft, Amazon, and Apple. Semiconductor stocks demonstrated robust performance, with the Philadelphia Semiconductor Index surging by 2.3%.

On the economic front, the Conference Board reported a notable increase in U.S. consumer confidence for October. In addition, the Labor Department revealed that job openings in the United States declined to 7.44 million in September, from a revised figure of 7.86 million in August.

Crude oil futures continued their downward trend on Tuesday amidst concerns that crude supply will significantly surpass near-term demand. West Texas Intermediate Crude oil futures for December settled lower by $0.17 or approximately 0.25%, arriving at $67.21 per barrel.