China Bourse May Find Support At 3,000 Points

(RTTNews) - The China stock market has finished lower in back-to-back sessions, surrendering more than 15 points or 0.5 percent along the way. The Shanghai Composite Index now rests just beneath the 3,010-point plateau although it may find traction on Thursday.

The global forecast for the Asian markets is positive on optimism for a resolution in the trade wat between the United States and China. The European and U.S. markets were up and the Asian bourses are predicted to follow that lead.

The SCI finished modestly lower on Wednesday as losses from the properties were mitigated by support from the financials and a mixed picture from the energy producers.

For the day, the index sank 12.39 points or 0.41 percent to finish at 3,008.81 after trading between 3,004.22 and 3,030.56. The Shenzhen Composite Index lost 15.77 points or 0.93 percent to end at 1,671.54.

Among the actives, Industrial and Commercial Bank of China advanced 0.91 percent, while Bank of China climbed 1.10 percent, China Construction Bank jumped 1.13 percent, China Merchants Bank collected 0.14 percent, China Life Insurance added 0.48 percent, Ping An Insurance rose 0.13 percent, PetroChina shed 0.47 percent, China Petroleum and Chemical (Sinopec) perked 0.77 percent, China Shenhua Energy eased 0.15 percent, Gemdale dipped 0.09 percent, Poly Developments lost 0.29 percent, China Vanke tumbled 1.21 percent and CITIC Securities gathered 0.79 percent.

The lead from Wall Street is firm as stocks opened higher on Wednesday and continued to rise as the day progressed, sending the major averages to their best closing levels in a month.

The Dow added 227.61 points or 0.85 percent to 27,137.04, while the NASDAQ spiked 85.52 points or 1.06 percent to 8,169.68 and the S&P 500 rose 21.54 points or 0.72 percent to 3,000.93.

The strength on Wall Street came following news that China is granting tariff exemptions for 16 types of American-made products as a sign of goodwill ahead of the next round of trade talks.

Stocks also benefited from optimism about new global stimulus ahead of the European Central Bank's monetary policy decision later today as well as next week's Federal Reserve meeting.

Crude oil prices declined sharply Wednesday on a downward revision in OPEC's oil demand forecast and speculation that the U.S. may ease sanctions on Iran. West Texas Intermediate Crude oil futures for October ended down $1.65 or 2.9 percent at $55.75 a barrel, the lowest settlement since September 3.

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

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