China Stock Market Inherits Firm Lead For Tuesday's Trade
(RTTNews) - The China stock market on Monday ended the four-day losing streak in which it had stumbled more than 60 points or 1.8 percent. The Shanghai Composite Index now sits just beneath the 3,350-point plateau and it's expected to see additional support on Tuesday.
The global forecast for the Asian markets is upbeat on encouraging news about a possible Covid-19 vaccine. The European and U.S. markets were firmly higher and the Asian bourses are also expected to open in the green.
The SCI finished sharply higher on Monday following gains from the financials, properties and insurance and resource stocks.
For the day, the index climbed 36.86 points or 1.1 percent to finish at the daily high of 3,346.97 after moving as low as 3,313.65. The Shenzhen Composite Index advanced 21.16 points or 0.93 percent to end at 2,289.82.
Among the actives, Industrial and Commercial Bank of China added 0.40 percent, while Bank of China and China Construction Bank both collected 0.31 percent, China Merchants Bank advanced 0.99 percent, Bank of Communications rose 0.22 percent, China Life Insurance jumped 1.74 percent, Ping An Insurance gathered 3.44 percent, PetroChina perked 1.67 percent, China Petroleum and Chemical (Sinopec) spiked 1.99 percent, Jiangxi Copper skyrocketed 9.55 percent, Aluminum Corp of China (Chalco) surged 4.23 percent, Yanzhou Coal accelerated 4.03 percent, Baoshan Iron soared 2.99 percent, Gemdale rallied 3.10 percent, Poly Developments climbed 1.33 percent and China Vanke gained 0.52 percent.
The lead from Wall Street is positive as opened higher on Monday and remained in the green throughout the session, extending Friday's gains.
The Dow surged 470.63 points or 1.60 percent to finish at 29,950.44, while the NASDAQ jumped 94.84 points or 0.80 percent to end at 11,924.13 and the S&P 500 added 41.76 points or 1.16 percent to close at 3,626.91.
The strength on Wall Street followed more upbeat news on the coronavirus vaccine front, with Moderna (MRNA) reporting positive results from a trial of its vaccine candidate that showed an efficacy of 94.5 percent.
In economic news, the Federal Reserve Bank of New York said New York manufacturing activity unexpectedly expanded at a slower rate in November.
Crude oil prices surged higher Monday thanks to encouraging reports on Covid-19 vaccine and an improved energy demand outlook. West Texas Intermediate Crude oil futures for December ended up $1.21 or 3 percent at $41.34 a barrel.
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