39.1 C

Higher Open Predicted For China Stock Market


(RTTNews) – The China stock market has finished higher in two of three trading days since the end of the three-day slide in which it had stumbled more than 40 points or 1.4 percent. The Shanghai Composite Index now sits just beneath the 3,135-point plateau and it’s tipped to open in the green again on Wednesday.

The global forecast for the Asian markets is upbeat on optimism for the outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The SCI finished sharply higher on Tuesday following gains from the financials and resource stocks, while the properties were mixed.

For the day, the index jumped 50.68 points or 1.64 percent to finish 3,134.08 after trading between 3,074.50 and 3,135.59. The Shenzhen Composite Index spiked 41.28 points or 2.05 percent to end at 2,054.09.

Among the actives, Industrial and Commercial Bank of China collected 0.48 percent, while China Merchants Bank added 0.42 percent, Bank of Communications perked 0.22 percent, China Life Insurance was up 0.03 percent, Jiangxi Copper improved 0.75 percent, Aluminum Corp of China (Chalco) strengthened 1.39 percent, Yankuang Energy sank 0.85 percent, China Petroleum and Chemical (Sinopec) fell 0.23 percent, Huaneng Power rose 0.14 percent, China Shenhua Energy eased 0.03 percent, Gemdale skidded 1.03 percent, Poly Developments retreated 1.17 percent, China Vanke lost 0.24 percent, China Fortune Land surged 6.72 percent, Beijing Capital Development jumped 1.93 percent and Bank of China, China Construction Bank and PetroChina were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Tuesday, faded midday and then bounced higher again to end in the green.

The Dow added 56.22 points or 0.17 percent to finish at 33,592.92, while the NASDAQ jumped 162.19 point or 1.45 percent to end at 11,358.41 and the S&P 500 gained 34.48 points or 0.87 percent to close at 3,991.73.

The early rally on Wall Street followed the release of a Labor Department report showing producer prices in the U.S. crept up much less than expected in October.

Following last week’s tamer-than-expected consumer price inflation report, the data added to optimism about the Federal Reserve slowing the pace of interest rate hikes as soon as next month.

However, stocks pulled back well off their best levels of the day following reports Russian missiles crossed into Poland, killing two people.

Crude oil futures settled higher Tuesday, thanks to the smaller-than-expected increase in U.S. producer prices in October. West Texas Intermediate Crude oil futures for December ended higher by $0.94 at 86.81 a barrel.

Closer to home, China will see October results for its house price index later this morning; in September, prices slipped 1.5 percent on year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Please enter your comment!
Please enter your name here

Related articles

Recent articles