Hong Kong Shares May Open Under Pressure

(RTTNews) - The Hong Kong stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had tumbled almost 500 points or 1.9 percent. The Hang Seng Index now sits just above the 25,560-point plateau and it may spin its wheels again on Tuesday.

The global forecast for the Asian markets is soft on renewed concerns over the conflict in the Middle East and the corresponding jump in crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The Hang Seng finished slightly lower on Monday as losses from the energy and technology companies were offset by support from the financial sector.

For the day, the index dipped 17.80 points or 0.07 percent to finish at the daily high of 25,566.99 after trading as low as 25,290.69.

The lead from Wall Street is weak as the major averages opened firmly lower on Monday and stayed that way throughout the session.

The Dow dropped 374.09 points or 0.70 percent to finish at 53,185.90, while the NASDAQ sank 31.54 points or 0.12 percent to close at 26,370.89 and the S&P 500 lost 25.62 points or 0.33 percent to end at 7,686.14.

The weakness on Wall Street came on concerns about a re-escalation of the military conflict in the Middle East following a period of relative calm, contributing to a jump in crude oil prices.

Crude oil prices jumped on Monday as the U.S. recommenced attacks on Iran, stoking concerns of a broader re-escalation in the gulf. West Texas Intermediate crude for October delivery was up $2.24 or 2.69 percent at $85.64 per barrel.

The sharp increase in crude oil prices contributed to renewed worries about the outlook for inflation ahead of this month's Federal Reserve meeting. Treasury yields then moved higher on the day, with the yield on the benchmark ten-year note reaching its highest levels in over a year.