RTTNews - The China stock market on Wednesday wrote a finish to the three-day winning streak in which it gained 35 points or 1.4 percent along the way. The Shanghai Composite Index is clinging to support at the 2,650-point plateau, but now analysts say the market could remain under pressure on Thursday and extend those losses.

The global forecast for the Asian markets is slightly negative on fresh concerns that the worldwide economic slowdown may last longer than originally thought - which could put the financials under pressure. The price of crude oil rose back above $62 to a six-month high, which is expected to provide support for the commodity plays. The European markets provide a positive lead, while the U.S. markets all ended modestly in the red - and the Asian markets are also projected to trend lower.

The SCI finished modestly lower on Wednesday, dragged to the downside by the weakness among the steel stocks and the telecoms - although the losses were largely offset by gains among the commodities.

For the day, the index lost 25.27 points or 0.94 percent to close at 2,651.41 after trading between 2,686.34 and 2,651.01. There were 554 decliners and 226 gainers, with 74 stocks finishing unchanged. The Shenzhen Index was down 55.22 points or 0.53 percent to finish at 10,369.14 points for a combined turnover of 217.33 billion yuan.

Among the gainers, Zhongjin Gold jumped 7.89 percent, while Shandong Gold Mining added 2.44 percent, Shanxi Coking jumped 5.68 percent, Guizhou Panjiang Refined Coal gained 8.15 percent, China Coal Energy added 2.10 percent, Zijin Mining Group was up 1.02 percent, Zhongtong Bus & Holding rose 3.63 percent, Hisense Electric added 2.13 percent and Haitong Securities was up 0.93 percent.

Finishing lower, Guangzhou Iron & Steel slid 1.02 percent, while Baoshan Iron and Steel fell 2.05 percent, China Unicom shed 4.02 percent and Datang Telecom Technology dropped 3.94 percent.

The lead from Wall Street is modestly pessimistic as stocks finished Wednesday's trading session modestly lower, unable to sustain earlier gains. The major averages all slipped into negative territory in mid-afternoon dealing, closing just off of their worst levels of the day. Trading this week has been largely subdued as many traders sat on the sidelines following considerable profit taking last week, prompted by the run up in equities in recent months.

Traders digested the latest minutes of the Federal Open Market Committee released earlier this afternoon, which revealed some debate within the policymaking arm of the Federal Reserve over whether or not to purchase additional treasury securities. Although the final decision was to stick with the $300 billion agreed on at the March meeting, in late April some officials thought that purchasing more could spur recovery. While there was some debate over whether or not additional purchases would be needed, officials agreed that such a purchase was not warranted at that time.

Earlier, traders heard comments from treasury Secretary Timothy Geithner who issued cautious optimism regarding the recovery of the embattled financial sector, while Bank of America (BAC) was able to raise a substantial amount of capital, further bolstering prospects for the industry. The day's trading was also impacted by better-than-expected earnings from Target (TGT) and Deere (DE).

In other news, the House of Representatives passed a landmark credit card industry reform bill Wednesday afternoon, sending legislation designed to crack down on the credit card industry to President Barack Obama. The 361-64 vote sends the bill Obama's desk and he is expected to sign it as early as Friday.

The major averages all closed slightly lower a late day selloff dragged the indices into negative territory. The Dow closed lower by 52.81 points or 0.62 percent to finish at 8422.04, while the NASDAQ was down 6.70 points or 0.39 percent to end at 1727.84, and the S&P 500 slipped by 4.66 points or 0.51 percent to finish at 903.47.

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