Firm Lead Called For China Stock Market

(RTTNews) - The China stock market has moved higher in consecutive trading days, soaring almost 210 points or 7.4 percent along the way. The Shanghai Composite Index now rests just above the 2,960-point plateau and the overbought bourse is predicted to open higher again on Tuesday.

The global forecast for the Asian markets suggests a higher open on optimism over global trade, although a drop in crude oil prices may limit the upside. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The SCI finished sharply higher on Monday with gains across the board on hopes for a resolution in the trade dispute with the U.S. Financials, properties and energy companies led the way.

For the day, the index skyrocketed 157.06 points or 5.60 percent to finish at 2,961.28 after trading between 2,838.39 and 2,961.80. The Shenzhen Composite Index surged 80.02 points or 5.42 percent to end at 1,557.27.

Among the actives, Industrial and Commercial Bank of China spiked 6.31 percent, while Bank of China climbed 5.15 percent, China Construction Bank jumped 6.19 percent, China Merchants Bank advanced 6.17 percent, China Life Insurance skyrocketed 10.02 percent, Pin An Insurance surged 8.92 percent, PetroChina added 3.70 percent, China Petroleum and Chemical (Sinopec) gained 3.23 percent, China Shenhua Energy rose 5.05 percent, Gemdale gathered 4.50 percent, Poly Developments perked 5.66 percent, China Vanke soared 5.27 percent and CITIC Securities accelerated 9.99 percent.

The lead from Wall Street is positive as stocks opened higher on Monday, gave ground as the day progressed but still finished firmly in the green.

The Dow added 60.14 points or 0.23 percent to end at 26,091.95, while the NASDAQ gained 26.92 points or 0.36 percent to 7,554.46 and the S&P 500 rose 3.44 points or 0.12 percent to 2,796.11.

The early strength on Wall Street came after President Donald Trump announced he intends to postpone a planned Match 1 increase in U.S. tariffs on Chinese imports - although he did not specify another deadline to strike a trade deal.

Trading activity was subdued, however, as traders looked ahead to the second summit between Trump and North Korean leader Kim Jong Un. Federal Reserve Chairman Jerome Powell's testimony before Congress in the coming days also kept some traders on the sidelines.

Crude oil futures fell to their lowest levels in more than a week on Monday, weighed down by a tweet from Trump that said oil prices were getting too high. West Texas Intermediate Crude oil futures April ended down $1.78 or 3.1 percent at $55.78 a barrel, well off the day's high of $57.53.
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