Chinese stocks tumble 3% as does Gold.

Chinese stocks tumble 3% as does Gold.

Chinese stocks led weaker across Asian markets on Monday.

Traders returned to work after a week long holiday, brushing aside the latest rate cut by the People’s Bank of China. Chinese stocks returned from the Golden Week holiday with opening declines of 2% after last week’s wide selling in Asia and a U.S.-listed benchmark of mainland companies falling nearly 5%. The major indices in both Shanghai SHCOMP, -3.72% and Shenzhen 399106, -3.83% were last down around 3.7%.

A survey of China’s service sector came in mixed, with the sector growing at a faster pace in September, but a sub index of employment abruptly shrunk, falling to its lowest level since March 2016.

Hong Kong’s Hang Seng Index HSI, -1.39% was down 1.3%. Japan markets are closed for a holiday.

Stocks slipped 0.6% in South Korea SEU, -0.60% and 0.7% in New ZealandNZ50GR, -0.74% Indexes in Taiwan Y9999, -0.58% and Singapore STI, -0.76%declined.

Australia’s ASX 200 XJO, -1.38% fell 1.3% amid weakness in oil prices. The finance sector also fell, led by losses from Australia and New Zealand Banking Group ANZ, -2.63% and Commonwealth Bank of Australia CBA, -0.93%

GOLD TECHNICAL ANALYSIS

Gold prices continue to stay below resistance levels at 1214.30 (range top, trend line set from mid-April) but the overall trend continues to point decidedly lower. Initial support is marked by the September 28 low at 1180.86, with a daily close below that exposing the mid-August swing bottom at 1160.37. A daily close above 1214.30 would neutralise the near-term bearish bias and expose the 1235.24-41.64 zone.

Gold Prices Hurt as Fed Outlook Firms, Crude Oil May Be Topping

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