China Stock Market Tipped To Open In The Green
(RTTNews) - The China stock market has moved lower in two of three trading days since the end of the eight-day winning streak in which it had accelerated more than 390 points or 12 percent. The Shanghai Composite Index now sits just beneath the 3,415-point plateau and it's expected to rebound again on Wednesday.
The global forecast for the Asian markets is mixed to higher, with rising coronavirus concerns offset by optimism for further stimulus. 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 modestly lower on Tuesday following losses from the financial shares, property stocks and oil and insurance companies.
For the day, the index dropped 28.67 points or 0.83 percent to finish at 3,414.62 after trading between 3,366.08 and 3,451.22. The Shenzhen Composite Index lost 19.83 points or 0.85 percent to end at 2,309.57.
Among the actives, Industrial and Commercial Bank of China skidded 1.34 percent, while Bank of China shed 0.54 percent, China Construction Bank retreated 1.23 percent, China Merchants Bank tanked 2.12 percent, China Life Insurance tumbled 1.61 percent, Ping An Insurance dropped 1.29 percent, PetroChina lost 1.51 percent, China Petroleum and Chemical (Sinopec) surrendered 1.92 percent, Baoshan Iron fell 0.76 percent, Gemdale shed 1.31 percent, Poly Developments plunged 2.20 percent and China Vanke sank 0.89 percent.
The lead from Wall Street is broadly positive as stocks rebounded on Tuesday from the sharp pullback in the previous session.
The Dow surged 556.79 points or 2.13 percent to finish at 26,642.59, while the NASDAQ jumped 97.73 points or 0.94 percent to end at 10,488.58 and the S&P 500 rose 42.30 points or 1.34 percent to close at 3,197.52.
The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.
Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.
Investors shrugged off a surge in new coronavirus cases, even though several U.S. states are likely to resort to another lockdown. Already, California Governor Gavin Newscom has ordered the reintroduction of coronavirus-related restrictions, aiming to contain the spread of the pandemic.
Crude oil futures were higher on Tuesday, with traders weighing global crude supply and demand positions ahead of today's OPEC meeting. West Texas Intermediate Crude oil futures for August ended up $0.19 or 0.5 percent at $40.29 a barrel.