China Stock Market Expected To Remain Rangebound
(RTTNews) - The China stock market has alternated between positive and negative finishes through the last 10 trading days since the end of the two-day slide in which it had retreated more than 45 points or 0.6 percent. The Shanghai Composite Index now rests just beneath the 3,600-point plateau although it's expected to rebound again on Wednesday.
The global forecast for the Asian markets is positive on solid earnings news and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.
The SCI finished modestly lower on Tuesday following losses from the financial shares, property stocks and resource companies.
For the day, the index shed 12.22 points or 0.34 percent to finish at 3,597.64 after trading between 3,589.71 and 3,625.02. The Shenzhen Composite Index sank 8.83 points or 0.36 percent to end at 2,424.39.
Among the actives, Industrial and Commercial Bank of China shed 0.42 percent, while Bank of China and China Construction Bank both fell 0.33 percent, China Merchants Bank collected 1.30 percent, Bank of Communications lost 0.44 percent, China Life Insurance retreated 1.31 percent, Jiangxi Copper slid 0.36 percent, Aluminum Corp of China (Chalco) dipped 0.43 percent, Yanzhou Coal declined 1.37 percent, PetroChina dropped 1.02 percent, China Petroleum and Chemical (Sinopec) sank 0.67 percent, Huaneng Power tanked 2.69 percent, China Shenhua Energy surrendered 2.19 percent, Gemdale plunged 2.89 percent, Poly Developments cratered 3.26 percent, China Vanke plummeted 4.23 percent and Beijing Capital Development declined 3.82 percent.
The lead from Wall Street suggests mild upside as the major averages opened solidly higher on Tuesday but faded as the day progressed, finishing only with slight gains.
The Dow added 15.73 points or 0.04 percent to finish at 35,756.88, while the NASDAQ rose 9.01 points or 0.06 percent to close at 15,235.71 and the S&P 500 gained 8.31 points or 0.18 percent to end at 4,574.79.
The early strength on Wall Street reflected a positive reaction to the latest batch of earnings news from several big-name companies such as UPS (UPS) and General Electric (GE).
Positive sentiment may also have been generated in reaction to a report from the Commerce Department showing new home sales in the U.S. skyrocketed in September. A separate report from the Conference Board showed consumer confidence reversed a three-month downward trend in October amid easing concerns about the Delta variant of the coronavirus.
Crude oil futures settled higher Tuesday, recovering from early losses amid increasing signs of a supply shortage and higher demand for oil. West Texas Intermediate Crude oil futures for December ended higher by $0.89 or 1.1 percent at $84.65 a barrel.
Closer to home, China will see September numbers for industrial profits later today; in August, profits surged 49.5 percent on year.
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