Chinese shares end lower on Wednesday, impacted by US stock market rout

Source:Reuters Published: 2018/12/5 18:38:41

Chinese shares closed lower on Wednesday, after a slump in morning trading dragged down by the sharp decline of US stocks overnight.

At the close, the blue-chip CSI300 index was down 0.5 percent at 3,252.00, while the benchmark Shanghai Composite Index went down 0.61 percent to 2,649.81 points.

The Shenzhen Component Index closed 0.32 percent lower at 7,928.51 points.

Asian stocks slid across the board on Wednesday, dragged down by Wall Street's tumble as sharp declines in long-term US Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.

Spread betters expected European stocks to open lower, with Britain's FTSE losing 0.9 percent, Germany's DAX falling 1.2 percent and France's CAC retreating 1 percent.

Global equities have been shaken as a flattening US Treasury yield curve fans worries about a recession, and on growing doubts that China and the US will be able to clinch a substantive trade deal during a temporary cease-fire agreed at the weekend.

The Dow retreated 3.1 percent and the NASDAQ sank 3.8 percent on Tuesday. US financial shares, which are particularly sensitive to bond market swings, dropped 4.4 percent.

Following Wall Street's overnight tumble, S&P e-mini futures ESc1 nudged up 0.3 percent in Asian trade on Wednesday.

Signals from the Federal Reserve last week that it may be nearing an end to its three-year rate hike cycle has pushed the 10-year US Treasury yield to three-month lows below 3 percent.

Posted in: MARKETS

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