China Stock Market May Reclaim 3,100-Point Level

(RTTNews) - The China stock market on Tuesday ended the three-day losing streak in which it had slumped almost 40 points or 1.3 percent. The Shanghai Composite Index now sits just above the 3,090-point plateau and it's likely to open in the green again on Wednesday.

The global forecast for the Asian markets suggests mild upside on easing treasury yields. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The SCI finished slightly higher on Tuesday as gains from the properties and miners were capped by weakness from the oil and energy stocks.

For the day, the index perked 4.39 points or 0.14 percent to finish at 3,091.20 after trading between 3,063.59 and 3,095.32. The Shenzhen Composite Index added 7.81 points or 0.45 percent to end at 1,726.92.

Among the actives, Industrial and Commercial Bank of China collected 0.55 percent, while China Merchants Bank climbed 1.14 percent, Bank of Communications strengthened 1.69 percent, China Life Insurance eased 0.03 percent, Jiangxi Copper added 0.52 percent, Aluminum Corp of China (Chalco) rallied 1.25 percent, Yankuang Energy plunged 4.94 percent, PetroChina retreated 1.67 percent, China Petroleum and Chemical (Sinopec) skidded 1.09 percent, Huaneng Power spiked 2.22 percent, China Shenhua Energy tanked 2.31 percent, Gemdale skyrocketed 6.60 percent, Poly Developments soared 3.13 percent, China Vanke surged 3/34 percent and Bank of China and China Construction Bank were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages spent much Tuesday under water before a late rally nudged them modestly up into the green.

The Dow climbed 140.26 points or 0.36 percent to finish at 38,711.29, while the NASDAQ rose 28.38 points or 0.17 percent to close at 16,857.05 and the S&P 500 perked 7.94 points or 0.15 percent to end at 5,291.34.

The higher close by the major averages came on a notable decrease by treasury yields, which extended their recent decline. The yield on the benchmark ten-year note closed lower for the fourth straight session, pulling back further off the nearly one-month closing high last Wednesday.

The continued advance by treasuries came amid signs of weakness in the labor market, with a report from the Labor Department showing a modest decrease in U.S. job openings in April.

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which could have a significant impact on the outlook for the economy and interest rates.

Oil prices fell on Tuesday, extending losses from the previous session amid concerns about possible oversupply in the market after OPEC decided to phase out voluntary production cuts from October. West Texas Intermediate crude oil futures for July fell $0.97 or 1.3 percent at $73.25 a barrel.

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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