2015.01.1205:14:32UTC+00Chinese stocks on three-day losing streak ahead of trade data

Chinese stocks dropped for a third consecutive day as market participants worry about the excessive rally of the benchmark index in relation to the economic outlook.

The Shanghai Composite Index shed 1.7% to 3,229.32 at the end of trade. Hong Kong’s Hang Seng China Enterprises Index sank by 0.3%. The Hang Seng Index tumbled by 0.6% while the CSI 300 Index dropped by 0.9%.

Market participants are now anticipating tomorrow’s release of the Chinese trade data. According to Bloomberg’s median estimate, last month’s exports rose by 6% while imports shed 6.2%.

Meanwhile, US stocks closed lower for the week following the wildest swings since 2009 with the S&P 500 along with other major indices in red territory.

The S&P 500 ended the week lower by 0.84% or 17.33 points to 2,044.81. All ten major industry groups of the index retreated. In the previous week, the gauge was down 0.7% making for a generally unfavorable start for the year 2015 after more than 10% of annual gains in the last three years. The Dow Jones Industrial Average shed 0.95% or 170.50 points to 17,737.37 for a total of 0.5% decline for the week. Among the 30 components of the gauge, 25 dropped with Chevron losing the most in the blue-chip declines. The Nasdaq Composite sank by 0.68% or 32.12 points to 4,704.07 for a total of 0.5% in losses for the week.