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Higher Open Called For China Stock Market

(RTTNews) - The China stock market has finished lower in consecutive trading days, sliding almost 30 points or 1 percent along the way. The Shanghai Composite Index now rests just above the 3,015-point plateau although it may find support on Thursday.

The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates and a spike in crude oil prices. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.

The SCI finished modestly lower on Wednesday as losses from the financials and resource stocks were mitigated by support from the properties.

For the day, the index sank 28.68 points or 0.94 percent to finish at 3,015.26 after trading between 3,006.32 and 3,031.83. The Shenzhen Composite Index tumbled 19.10 points or 1.18 percent to end at 1,600.02.

Among the actives, Industrial and Commercial Bank of China shed 0.18 percent, while China Merchants Bank dropped 1.01 percent, China Construction Bank collected 0.40 percent, China Life Insurance skidded 1.09 percent, Ping An Insurance lost 0.44 percent, China Petroleum and Chemical (Sinopec) retreated 1.10 percent, Baoshan Iron fell 0.45 percent, Gemdale spiked 2.18 percent, Poly Developments jumped 1.21 percent, China Vanke climbed 1.07 percent, CITIC Securities tumbled 2.98 percent and Bank of China was unchanged.

The lead from Wall Street is firm as stocks showed a strong move to the upside over the course of a holiday-shortened trading session on Wednesday.

The Dow climbed 179.32 points or 0.67 percent to 26,966.00, while the S&P 500 gained 22.81 points or 0.77 percent to 2,995.82 and the NASDAQ rose 61.14 points or 0.75 percent to 8,170.23.

The strength on Wall Street came as a batch of largely disappointing U.S. economic data reinforced expectations for a near-term interest rate cut by the Federal Reserve.

Initial buying interest was generated when payroll processor ADP said private sector job growth came in below estimates in June. Also, the Institute for Supply noted a slowdown in service sector growth, added to the optimism about a rate cut.

Crude oil prices rebounded Wednesday, recovering after a severe setback in the previous session after U.S. crude inventories fell for a third straight week. West Texas Intermediate crude oil futures ended up $1.09 or 1.9 percent at $57.34 a barrel.
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