Rebound Expected For China Stock Market
(RTTNews) - The China stock market on Wednesday halted the two-day winning streak in which it had picked up almost a dozen points or 0.4 percent. The Shanghai Composite Index now rests just beneath the 2,905-point plateau although it figures to bounce higher again on Thursday.
The global forecast for the Asian markets is upbeat on growing optimism for a trade deal between the United States and China. The European and U.S. markets were up and the Asian bourses are predicted to follow that lead.
The SCI finished slightly lower on Wednesday following losses from the energy producers and properties.
For the day, the index eased 3.87 points or 0.13 percent to finish at 2,903.19 after trading between 2,893.42 and 2,914.49. The Shenzhen Composite Index lost 3.64 points or 0.23 percent to end at 1,602.00.
Among the actives, Industrial and Commercial Bank of China collected 0.51 percent, while Bank of China shed 0.27 percent, China Construction Bank rose 0.14 percent, China Merchants Bank jumped 1.81 percent, China Life Insurance added 0.62 percent, Ping An Insurance lost 0.57 percent, China Petroleum and Chemical (Sinopec) dipped 0.20 percent, China Shenhua Energy tumbled 1.47 percent, Gemdale skidded 1.14 percent, Poly Developments sank 0.74 percent, China Vanke dropped 1.23 percent, Jiangxi Copper advanced 1.07 percent and PetroChina was unchanged.
The lead from Wall Street is positive as stocks moved mostly higher on Wednesday, extending recent gains and sending the major averages to fresh record closing highs.
The Dow added 42.32 points or 0.15 percent to 28,164.00, while the NASDAQ gained 57.24 points or 0.66 percent to 8,705.17 and the S&P 500 rose 13.11 points or 0.42 percent to 3,153.63.
The markets continued to benefit from optimism about a potential U.S.-China trade deal after both sides hinted at progress.
In economic news, the Commerce Department said durable goods orders unexpectedly rebounded in October, while GDP was also upwardly revised. Also, the Commerce Department said personal income was nearly flat in October, although personal spending rose in line with estimates.
Oil prices dipped on Wednesday after the Energy Information Administration noted an unexpected increase in crude oil inventories. Crude for January delivery fell $0.30 or 0.5 percent to $58.11 a barrel after moving higher over the two previous days.