China Markets Open Lower; U.S. Fed Meeting In Focus

Chinese stocks were trading lower on Tuesday. The Shanghai Composite Index dropped 21.4 points, or 0.68 percent to 3,131.60, while the Shenzhen composite fell 0.61 percent to 511.82.

iShares FTSE/Xinhua China 25 Index (ETF) FXI shares fell 2.30 percent to close at $36.61 on Monday, while SPDR S&P China (ETF) GXC declined 2.08 percent to close at $74.72.

The People’s Bank of China set its yuan midpoint at 6.8934 versus the U.S. dollar, versus the previous fix of 6.9086. USD/CNY was trading at 6.9003 level.

China’s industrial output rose 6.2 percent year-over-year for November, versus expectations for a 6.1 percent growth. Retail sales for November increased 10.8 percent year-over-year, versus expectations for a 10.1 percent growth.

The Federal Open Market Committee will begin its two-day policy meeting today. The Dow Jones Industrial Average gained 0.20 percent, to 19,796.43, the S&P500 index fell 0.22 percent to 2,256.96 and the Nasdaq Composite declined 0.59 percent to 5,412.54.

Oil prices traded lower on Tuesday, with the US WTI crude futures on the NYMEX dropping 0.36 percent to trade at $52.64 a barrel.

Top market movers among the Shanghai Composite index are as follows:

• China Northern Rare Earth Group High-Tech Co Ltd (600111: SHH) shares gained 1.7 percent to 12.86 CNY.
• China Shipbuilding Industry Co Ltd (601989: SHH) rose 1.4 percent to 7.19 CNY.
• Kweichow Moutai Co Ltd (600519: SHH) shares rose 1.2 percent to 330.77 CNY.

• China State Construction Engineering Corp Ltd (601668: SHH) shares dropped around 3.5 percent to 9.27 CNY.
• China Merchants Bank Co Ltd (600036: SHH) dropped 1.9 percent to 18.89 CNY.
• Industrial Bank Co Ltd (601166: SHH) fell 1.3 percent to 17.08 CNY.