China Stock Market Tipped To Crack 2,900-Point Barrier

(RTTNews) - The China stock market has climbed higher in two straight sessions, gathering more than 8 points or 0.3 percent along the way. The Shanghai Composite Index now rests just above the 2,890-point plateau and the it's expected to add to its winning streak again on Wednesday.

The global forecast for the Asian markets is firm on improved outlooks for interest rates and trade, plus a spike in crude oil prices. The European and U.S. market were up and the Asian bourses figure to follow suit.

The SCI finished slightly higher on Tuesday following gains from the financial shares and insurance companies, while the properties and oil stocks came in mixed.

For the day, the index rose 2.54 points or 0.09 percent to finish at 2,890.16 after trading between 2,874.31 and 2,898.33. The Shenzhen Composite Index added 2.45 points or 0.16 percent to end at 1,504.57.

Among the actives, Industrial and Commercial Bank of China added 0.17 percent, while Bank of China collected 0.80 percent, China Merchants Bank spiked 2.18 percent, China Construction Bank jumped 1.80 percent, China Life Insurance rose 0.15 percent, Ping An Insurance gained 0.60 percent, PetroChina tumbled 1.84 percent, China Petroleum and Chemical (Sinopec) was up 0.19 percent, China Shenhua Energy soared 3.18 percent, Gemdale sank 0.92 percent, Poly Developments perked 0.55 percent, China Vanke fell 0.47 percent and CITIC Securities lost 0.76 percent.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Tuesday, sending the major averages to their best closing levels in more than a month.

The Dow added 353.01 points or 1.35 percent to end at 26,465.54, while the NASDAQ gained 108.86 points or 1.39 percent to 7,953.88 and the S&P 500 rose 28.08 points or 0.97 percent to 2,917.75.

Stocks extended an initial move to the upside after President Donald Trump said on Twitter that he had a "very good" telephone conversation with Chinese President Xi Jinping and they will have an extended meeting at the G20 summit next week.

That added to optimism that the Fed will strike a dovish tone in its latest monetary policy decision later today. The Fed is widely expected to leave interest rates unchanged but could signal plans to cut rates as soon as its next meeting in July.

Crude oil futures ended at a one-week high Tuesday amid mild optimism about a U.S.-China trade agreement, while traders also weighed the likely impact of an extended output reduction by OPEC. West Texas Intermediate Crude oil futures for July ended up $1.97 or 3.8 percent at $53.90 per barrel.
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