Shanghai Composite tipped to open lower after Monday's sharp rally

Macro
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Summary · why it matters

The Shanghai Composite Index is expected to open lower on Tuesday after jumping 72.62 points or 1.78 percent to 4,163.10 on Monday. The Shenzhen Composite Index also climbed 48.45 points or 1.70 percent to 2,901.82. The negative lead from Wall Street, where the NASDAQ tumbled 351.33 points or 1.32 percent amid weakness in technology shares and rising treasury yields, is weighing on sentiment. Concerns about the outlook for interest rates ahead of key inflation data later in the week drove the two-year note yield to its highest levels in over a year. Among active stocks on Monday, China Life Insurance surged 8.13 percent, Aluminum Corp of China soared 5.12 percent, and Jiangxi Copper accelerated 2.91 percent.

Impact on stocks 3