Rebound Predicted For China Stock Market
(RTTNews) - The China stock market on Wednesday snapped the three-day winning streak in which it had collected almost 80 points or 2.6 percent. The Shanghai Composite Index now rests just above the 2,975-point plateau although it figures t bounce higher again on Thursday.
The global forecast for the Asian markets is upbeat in easing coronavirus concerns and a spike in crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow that lead.
The SCI finished modestly lower on Wednesday following losses from the resource stocks and mixed performances from the financial shares and properties.
For the day, the index sank 9.57 points or 0.32 percent to finish at 2,975.40 after trading between 2,971.82 and 2,998.27. The Shenzhen Composite Index slid 10.16 points or 0.6 percent to end at 1,846.41.
Among the actives, Industrial and Commercial Bank of China collected 0.37 percent, while Bank of China added 0.56 percent, China Construction Bank rose 0.15 percent, China Merchants Bank shed 0.48 percent, China Life Insurance gained 0.22 percent, Ping An Insurance increased 0.18 percent, PetroChina slid 0.37 percent, China Petroleum and Chemical (Sinopec) fell 0.21 percent, China Shenhua Energy dropped 0.78 percent, Gemdale gathered 0.65 percent, Poly Developments eased 0.13 percent and China Vanke dipped 0.17 percent.
The lead from Wall Street is positive as stocks moved mostly higher on Wednesday, erasing losses from the previous session.
The Dow added 115.84 points or 0.40 percent to finish at 29,348.03, while the NASDAQ gained 84.44 points or 0.87 percent to 9,817.18 and the S&P 500 rose 15.86 points or 0.47 percent to 3,386.15.
Easing concerns about the coronavirus outbreak contributed to the strength on Wall Street after Chinese officials reported the lowest number of newly confirmed cases since late January.
A rebound by shares of Apple (AAPL) also generated some positive sentiment, with the tech giant jumping by 1.5 percent after slumping by 1.8 percent on Tuesday.
In economic news, the Labor Department said producer prices increased more than expected in January. Also, the Commerce Department noted a pullback in new residential construction last month.
Toward the end of the trading day, the Federal Reserve released the minutes of its latest monetary policy meeting, which reiterated Fed officials believe leaving interest rates at their current levels is likely to remain appropriate for some time.
Crude oil prices rose sharply on Wednesday as concerns about the outlook for energy demand eased after reports said the number of coronavirus cases fell down for a second straight day in China. West Texas Intermediate Crude oil futures for March rose $1.24, or 2.4 percent at $53.29 a barrel.
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