China Stock Market May Turn Lower Again On Thursday

(RTTNews) - The China stock market bounced higher again on Wednesday, one session after it had ended the two-day winning streak in which it had surged almost 170 points or 7 percent. The Shanghai Composite Index now rests just above the 2,600-point plateau although it may see renewed selling pressure on Thursday.

The global forecast for the Asian markets is broadly negative thanks to geopolitical concerns and poor earnings news. The European and U.S. markets were firmly lower and the Asian markets are tipped to open in similar fashion.

The SCI finished modestly higher on Wednesday as gains from the financials and properties were capped by weakness from the oil companies.

For the day, the index added 8.47 points or 0.33 percent to finish at 2,603.30 after trading between 2,577.77 and 2,640.40. The Shenzhen Composite Index eased 3.07 points or 0.24 percent to end at 1,297.22.

Among the actives, China Construction Bank jumped 2.73 percent, while China Merchants Bank advanced 1.27 percent, Bank of China climbed 1.66 percent, Industrial and Commercial Bank of China spiked 2.74 percent, CITIC Securities was up 1.32 percent, China Life Insurance collected 0.97 percent, China Petroleum and Chemical (Sinopec) slid 0.96 percent, PetroChina tumbled 2.58 percent, China Shenhua Energy gathered 1.35 percent, Gemdale added 0.74 percent, Poly Developments perked 1.68 percent and China Vanke gained 1.99 percent.

The lead from Wall Street is poor as stocks moved sharply lower on Wednesday. The Dow dropped to its lowest closing level in over three-months, while the NASDAQ and the S&P 500 tumbled to five-month closing lows.

The Dow shed 608.01 points or 2.41 percent to 24,583.42, while the NASDAQ plummeted 329.14 points or 4.43 percent to 7,108.40 and the S&P 500 fell 84.59 points or 3.09 percent to 2,656.10.

The selling pressure on Wall Street reflected another negative reaction to the latest batch of earnings news from several big-name companies such as AT&T (T) and UPS (UPS).

Negative sentiment was also generated by a Commerce Department report showing a steep drop in new home sales in September.

News that explosive devices were sent to several prominent Democratic figures, including former President Barack Obama and Hillary Clinton, may also have led to some uneasiness on Wall Street.

Crude oil prices rebounded a bit on Wednesday, after having plunged sharply in the previous session amid concerns over weakening demand. Crude oil futures for December settled at $66.82 a barrel, gaining $0.39 or 0.6 percent for the session.
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