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China Shares May See Renewed Consolidation

(RTTNews) - The China stock market on Wednesday halted the two-day losing streak in which it had retreated more than 60 points or 2.3 percent. The Shanghai Composite Index now rests just above the 2,560-point plateau although it's expected to turn lower again on Thursday.

The global forecast for the Asian markets suggests mild consolidation thanks to a sharp drop in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The SCI finished modestly higher on Wednesday following gains from the resource stocks and insurance companies, while the financials came in mixed.

For the day, the index gained 15.28 points or 0.60 percent to finish at 2,561.61 after trading between 2,517.57 and 2,582.55.

Among the actives, Agricultural Bank of China added 0.80 percent, while China Construction Bank shed 0.44 percent, Bank of China collected 0.85 percent, Industrial and Commercial Bank of China lost 0.37 percent, Bank of Communications climbed 1.25 percent, Ping An Insurance gained 0.25 percent, China Life Insurance advanced 0.80 percent, PetroChina perked 1.91 percent, China Petroleum and Chemical (Sinopec) skidded 1.22 percent, China Shenhua Energy jumped 1.35 percent, Jiangxi Copper was up 0.62 percent, Aluminum Corporation of China (Chalco) accelerated 1.71 percent, Yanzhou Coal soared 3.02 percent and Maanshan Iron surged 2.77 percent.

The lead from Wall Street is soft as stocks opened lower Wednesday before bouncing back and forth across the unchanged line and eventually ended up in the red.

The Dow shed 91.74 points or 0.36 percent to end at 25,706.68, while the NASDAQ lost 2.79 points or 0.04 percent to 7,642.70 and the S&P 500 fell 0.71 points or 0.03 percent to 2,809.21.

The lackluster performance came as the Federal Reserve released the minutes of its September monetary policy meeting, which showed the central bank continues to favor a gradual approach to raising interest rates - meaning the economy is evolving as anticipated.

During the meeting, the Fed decided to raise rates by a quarter-point for a third time this year to 2 to 2.25 percent and forecast another rate hike before the end of the year. The central bank's forecasts also pointed to three rate hikes in 2019.

Mixed earnings news added to the sentiment as tech giant IBM Corp. (IBM) reported weaker than expected revenues, while Netflix (NFLX) beat the street.

Crude oil futures declined sharply on Wednesday, after data showed crude stockpiles swelled last week. Crude oil futures for November delivery ended down $2.17 or 3 percent at $69.75 a barrel, the lowest settlement in a month.
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