FXStreet (Mumbai) – Chinese equities halted its government-measures led recovery and plunged for the second straight session on Monday, after back-to-back softer economic data releases in the world’s second largest economy re-ignited concerns over the health of China’s economy. Energy and industrial companies led the decline.
On Monday, the statistics bureau said that industrial profits in China fell 0.3% from a year ago, after rising 2.6% and 0.6% in April and May. While on Friday the preliminary China Caixin purchasing managers index (PMI) surprised markets by dropping to a 15-month low in July to 48.2, coming in well below the 49.7 forecast.
Currently, the benchmark Shanghai Composite (SSEC) trades -7% lower at fresh weekly lows of 3777, tanks nearly 300 points.
SSEC Technical Levels
The index has an immediate resistance stands at 4k. Meanwhile, support is seen at 3677 levels and from here to 3600 levels.
(Market News Provided by FXstreet)