Key Points:
- SSE dropped 1.49% to close at 1,487.50, extending losses amid trade tensions.
- Trump’s tariffs on China, Mexico, and Canada heightened market uncertainty.
- Technology and AI-related stocks led the declines, mirroring a broader risk-off sentiment as traders brace for China’s Two Sessions next week, seeking clarity on fiscal policy.
The SSE (Shanghai Stock Exchange) extended its decline on Wednesday, closing 1.49% lower at 1,487.50, as escalating trade tensions and global economic uncertainty weighed on sentiment. The index, which touched an intraday high of 1,515.00, saw intensified selling pressure toward the session’s close, slipping to its lowest level of 1,487.50.
Technical Analysis
Image: SSE slides to 1487.50, testing key support near 1472.00, as seen on the VT Markets app.
SSE declined 1.49%, closing at 1487.50 after opening at 1510.00. The session recorded a high of 1515.00 and a low of 1487.50, reflecting extended bearish pressure.
The moving averages (MA 5,10,30) indicate continued downside momentum, with shorter-term MAs below the long-term trend. The MACD (12,26,9) remains negative, with red histogram bars growing, reinforcing selling pressure.
Key levels to watch include 1472.00 as support and 1532.00 as resistance. A move below support may deepen losses, while a break above resistance could shift sentiment.
Trump Tariffs Add to Market Jitters
Trader sentiment remained weak following U.S. President Donald Trump’s confirmation of 25% tariffs on Canadian and Mexican goods, set to take effect on March 4. He also vowed to impose an additional 10% tariff on Chinese goods on top of the 10% he levied earlier.
The uncertainty surrounding China’s response to these trade measures has fueled volatility, pressuring equity markets across the region.
Tech Stocks Lead Declines Ahead of Two Sessions
The technology sector was among the worst performers, with AI and semiconductor stocks posting steep losses.
Market participants are now looking ahead to China’s annual Two Sessions meeting next week, where the government is expected to outline fiscal policies and economic stimulus measures to stabilize growth.
Market Outlook
The SSE remains under pressure, with 1,480 serving as key support. A break below this level could trigger further downside momentum. However, traders will closely monitor China’s upcoming policy announcements for any signs of economic stimulus, which could provide a short-term boost.
