The China stock market has moved lower in two straight sessions, sliding more than 10 points or 0.3 percent along the way. The Shanghai Composite Index now rests just above the 2,930-point plateau and it's likely to open under pressure again on Thursday.
The global forecast for the Asian markets is soft on uncertainty over the outlook for interest rates and a drop in crude oil prices. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.
The SCI finished slightly lower on Wednesday following losses from the financial shares and energy producers.
For the day, the index dipped 5.92 points or 0.20 percent to finish at 2,931.69 after trading between 2,924.46 and 2,942.07. The Shenzhen Composite Index added 2.54 points or 0.16 percent to end at 1,574.35.
Among the actives, Industrial and Commercial Bank of China shed 0.89 percent, while Bank of China lost 0.54 percent, China Merchants Bank dipped 0.28 percent, China Construction Bank sank 0.70 percent, China Life Insurance eased 0.23 percent, Ping An Insurance added 0.05 percent, PetroChina fell 0.30 percent, China Petroleum and Chemical (Sinopec) was down 0.38 percent and China Shenhua Energy declined 0.47 percent.
The lead from Wall Street is negative as stocks opened in the red on Wednesday and remained there throughout the session, pulling back from record closing highs.
The Dow shed 115.78 points or 0.42 percent to 27,219.85, while the NASDAQ lost 37.59 points or 0.46 percent to 8,185.21 and the S&P fell 19.62 points or 0.65 percent to 2,984.42.
The weakness on Wall Street may reflect renewed uncertainty about the near-term outlook for interest rates following the release of disappointing housing data after the Commerce Department reported a bigger than expected drop in housing starts and building permits in June.
Trading activity was also subdued as traders stuck to the sidelines as they wait for the earnings season to pick up steam being making significant bets.
Crude oil prices drifted lower Wednesday after the U.S. Energy Information Administration noted a drop in crude oil stockpiles but a big jump in gasoline supply. West Texas Intermediate crude oil futures for August ended down $0.84 or 1.5 percent at $56.78 a barrel.
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