China Stock Market Draws Firm Lead For Wednesday

(RTTNews) - The China stock market has moved lower in two straight sessions, surrendering almost 60 points or 2 percent in that span. The Shanghai Composite Index now rests just beneath the 2,885-point plateau although it's tipped to open in the green on Wednesday.

The global forecast for the Asian markets is positive on bargain hunting, rising crude oil prices and optimism that the United States and China will reach a trade agreement. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished modestly lower on Tuesday following losses from the financials and energy producers, while the properties and insurance companies were mixed.

For the day, the index fell 20.10 points or 0.69 percent to finish at 2,883.61 after trading between 2,872.83 and 2,909.20. The Shenzhen Composite Index slid 9.68 points or 0.62 percent to end at 1,542.07.

Among the actives, Industrial and Commercial Bank of China shed 0.36 percent, while Bank of China lost 0.81 percent, China Construction Bank sank 0.57 percent, China Merchants Bank fell 0.73 percent, China Life Insurance jumped 1.18 percent, Ping An Insurance slid 0.45 percent, PetroChina eased 0.28 percent, China Petroleum and Chemical (Sinopec) dipped 0.19 percent, China Shenhua Energy dropped 0.70 percent, Gemdale added 0.60 percent, Poly Developments rose 0.23 percent and China Vanke tumbled 1.60 percent.

The lead from Wall Street is firm as stocks opened higher on Tuesday and remained in the green throughout the session, offsetting the losses from the previous day.

The Dow added 207.06 points or 0.82 percent to end at 25,532.05, while the NASDAQ jumped 87.47 points or 1.14 percent to 7,734.49 and the S&P 500 rose 22.54 points or 0.80 percent to 2,834.41.

Bargain hunting has contributed to the rebound on Wall Street, with traders picking up stocks at reduced levels following Monday's sell-off.

The markets are also benefiting from optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, repeatedly arguing that the U.S. is in a stronger position than China in the negotiations.

Crude oil prices moved higher on Tuesday amid supply concerns and slightly easing worries about energy demand after the U.S. and China struck a conciliatory tone on trade talks. West Texas Intermediate Crude oil futures for June ended up $0.74 or 1.2 percent at $61.78 a barrel.

Closer to home, China will release a raft of data later this morning, including April figures for industrial production, retail sales, fixed asset investment and unemployment.

Industrial production is expected to rise 6.5 percent on year, slowing from 8.5 percent in March. Retail sales are tipped to gain an annual 8.6 percent, down from 8.7 percent in the previous month. Fixed asset investment is predicted to rise 6.4 percent on year, up from 6.3 percent a month earlier. The jobless rate is called steady at 5.2 percent.
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