February 1, 2016 - 10:24 AM EST
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China Bourse May Take Further Damage On Tuesday

(dpa-AFX) - The
stock market headed south again on Monday, one session after it had ended the three-day slide in which it had retreated more than 280 points or 10 percent. The Shanghai Composite Index now rests just shy of the 2,690-point plateau, and the market may take further damage on Tuesday.

The global forecast for the Asian mixed and flat, likely in synch with the price of crude oil following inconclusive

economic data. The European markets were down and the
bourses were mixed but little changed, and the Asian markets figure to split the difference.

The SCI finished sharply lower on Monday following losses among the financial shares and the oil companies.

For the day, the index tumbled 48.75 points or 1.78 percent to finish at 2,688.85 after trading between 2,655.62 and 2,735.26. The

index lost 1.02 percent to end at 9,322.01 for a combined turnover of 370.4 billion yuan.

Among the actives, CITIC Securities shed 1.86 percent and PetroChina tumbled 2.82 percent.

The lead from Wall Street provides little clarity as stocks recovered from early weakness to end Monday's session nearly unchanged.

The NASDAQ inched up 6.41 points or 0.1 percent to 4,620.37, while the Dow slipped 17.12 points or 0.1 percent to 16,449.18 and the S&P 500 fell 0.86 points or less than a tenth of a percent to 1,939.38.

The early weakness came amid a sharp drop by the price of crude oil, as well as disappointing Chinese manufacturing data. Crude oil for March delivery tumbled $2 to $31.26 a barrel after rising $0.33 or 0.1 percent to $33.62 a barrel in the previous week.

On the

economic front, the Commerce Department said that personal income rose in line with estimates in December, although personal spending was virtually unchanged. Meanwhile, the Commerce Department said personal spending edged down by less than 0.1 percent in December.

The Commerce Department also said that construction spending rose less than expected in December. A separate report from the Institute for Supply Management showed that

manufacturing activity continued to contract in January.

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Source: Equities.com News (February 1, 2016 - 10:24 AM EST)

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