China Stock Market Tipped To Open In The Green
(RTTNews) - The China stock market has moved lower in two consecutive trading days, sliding more than 80 points or 2.4 percent along the way. The Shanghai Composite Index now sits just above the 3,360-point plateau and it's looking at a positive lead for Thursday's trade.
The global forecast for the Asian markets is upbeat on optimism for a coronavirus treatment. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.
The SCI finished sharply lower on Wednesday following losses from the financial shares, property stocks and oil and insurance companies.
For the day, the index tumbled 53.31 points or 1.56 percent to finish at 3,361.30 after trading between 3,345.75 and 3,432.45. The Shenzhen Composite Index plunged 47.77 points or 2.07 percent to end at 2,261.80.
Among the actives, Industrial and Commercial Bank of China skidded 1.17 percent, while Bank of China retreated 1.44 percent, China Construction Bank declined 1.71 percent, China Merchants Bank tumbled 1.78 percent, China Life Insurance eased 0.15 percent, Ping An Insurance sank 1.33 percent, PetroChina surrendered 1.54 percent, China Petroleum and Chemical (Sinopec) dropped 0.98 percent, Baoshan Iron plunged 2.48 percent, Gemdale tanked 1.73 percent, Poly Developments plummeted 2.84 percent and China Vanke tanked 2.28 percent.
The lead from Wall Street is firm as stocks fluctuated on Wednesday maintained a positive bias before ending mostly higher.
The Dow jumped 227.51 points or 0.85 percent to finish at 26,870.10, while the NASDAQ gained 61.92 points or 0.59 percent to end at 10,550.49 and the S&P 500 rose 29.04 points or 0.91 percent to close at 3,226.56.
The continued strength on Wall Street came as upbeat news on the coronavirus vaccine front helped traders shrug off a record single-day spike in new Covid-19 cases in the U.S. Biotech firm Moderna (MRNA) said its experimental vaccine was safe and produced strong immune responses in all 45 patients in an early-stage human trial.
Upbeat earnings news from Goldman Sachs (GS) added to the positive sentiment, with the financial giant reporting much stronger than expected second quarter results.
Crude oil futures ended firmly higher Wednesday after data showed a marked decline in U.S. crude inventories last week. West Texas Intermediate crude oil futures for August ended up $0.91 or 2.3 percent at $41.20 a barrel, the highest settlement since March 6.
Closer to home, China will release a raft of data this morning, including Q2 figures for GDP and June data for industrial production, retail sales, fixed asset investment and unemployment.
GDP is expected to rise 9.6 percent on quarter and 2.5 percent on year after sinking 9.8 percent on quarter and 6.8 percent on year in the previous three months.
Industrial production is tipped to rise 4.7 percent on year, up from 4.4 percent in May. Retail sales are expected to add 0.3 percent on year after sinking 2.8 percent in the previous month. FAI is tipped to lose 3.3 percent on year after falling 6.3 percent a month earlier. The jobless rate in May was 5.9 percent.
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