Losing Streak May Continue For China Stock Market

The China stock market has finished lower in back-to-back sessions, dropping more than 45 points or 1.3 percent along the way. The Shanghai Composite Index now rests just above the 3,560-point plateau and expected to open under pressure again on Thursday.

The global forecast for the Asian markets suggests consolidation, due mainly to profit taking and sinking crude oil prices. The European and U.S. markets were down and the Asian bourses are predicted to open in similar fashion.

The SCI finished modestly lower on Wednesday following losses from the financial shares and resource stocks, while the properties and energy companies were mixed.

For the day, the index dropped 35.33 points or 0.98 percent to finish at 3,562.31 after trading between 3,553.13 and 3,589.86. The Shenzhen Composite Index skidded 26.88 points or 1.11 percent to end at 2,397.51.

Among the actives, China Construction Bank fell 0.33 percent, while China Merchants Bank retreated 1.41 percent, Bank of Communications shed 0.44 percent, China Life Insurance lost 0.53 percent, Jiangxi Copper tanked 2.48 percent, Aluminum Corp of China (Chalco) plunged 5.92 percent, Yanzhou Coal plummeted 8.39 percent, PetroChina sank 0.68 percent, China Petroleum and Chemical (Sinopec) declined 1.58 percent, Huaneng Power skyrocketed 10.03 percent, China Shenhua Energy cratered 4.03 percent, Gemdale advanced 0.84 percent, Poly Developments slid 0.31 percent, China Vanke dipped 0.30 percent, Beijing Capital Development surrendered 3.17 percent and Industrial and Commercial Bank of China and Bank of China were unchanged.

The lead from Wall Street offers little clarity as the major averages took different paths on Wednesday. The NASDAQ opened higher and finished the same way, albeit barely. The Dow spent most of the session in the red and the S&P 500 hugged the unchanged line before both ended in negative territory.

The Dow dropped 266.19 points or 0.74 percent to finish at 35,490.69, while the NASDAQ rose 0.12 points or 0.00 percent to close at 15,235.84 and the S&P 500 fell 23.11 points or 0.51 percent to end at 4,551.68.

While a mixed reaction to the latest earnings news contributed to choppy trading, traders also looked to cash in on recent strength in the markets in late-day trading as the Dow and S&P eased from record highs.

Corporate earnings were mixed as companies like Twitter (TWTR) and General Motors (GM) disappointed, while Microsoft (MSFT) and Google parent Alphabet (GOOGL) beat the street.

On the U.S. economic front, the Commerce Department said durable goods orders pulled back by much less than expected in September.

Crude oil prices sank Wednesday after data showed a larger than expected increase in U.S. crude stockpiles last week. Oil prices were also weighed down by prospects of Iran freeing itself from U.S. sanctions and start selling oil to major importers again. West Texas Intermediate crude oil futures for December were down by $1.99 or 2.3 percent at $82.66 a barrel.