Renewed Consolidation Likely For China Stock Market
(RTTNews) - The China stock market has alternated between positive and negative finishes through the last five trading days since the end of the four-day losing streak in which it had plunged more than 210 points or 6.1 percent. The Shanghai Composite Index now rests just above the 3,475-point plateau although it's likely to head south again on Thursday.
The global forecast for the Asian markets is mixed to lower on economic growth concerns, coronavirus woes and tumbling oil prices. The European markets were up and the U.S. bourses were mostly lower and the Asian markets figure to follow the latter lead.
The SCI finished modestly higher on Wednesday as gains from the oil and resource stocks were offset by weakness from the financials and properties.
For the day, the index gained 29.23 points or 0.85 percent to finish at 3,477.22 after trading between 3,440.78 and 3,477.60. The Shenzhen Composite Index jumped 41.65 points or 1.72 percent to end at 2,465.62.
Among the actives, Industrial and Commercial Bank of China shed 0.66 percent, while Bank of China fell 0.33 percent, China Construction Bank lost 0.52 percent, China Merchants Bank skidded 1.24 percent, China Life Insurance retreated 1.30 percent, Jiangxi Copper climbed 1.47 percent, Aluminum Corp of China (Chalco) jumped 2.17 percent, Yanzhou Coal soared 4.72 percent, PetroChina gained 0.66 percent, China Petroleum and Chemical (Sinopec) added 0.50 percent, China Shenhua Energy gathered 0.52 percent, Gemdale increased 0.35 percent, Poly Developments dropped 0.99 percent, China Vanke declined 1.58 percent, Beijing Capital Development tanked 2.33 percent and Bank of Communications was unchanged.
The lead from Wall Street remains inconsistent as the Dow and S&P opened firmly lower on Wednesday and stayed that way - but the NASDAQ hugged the unchanged line and finished slightly higher.
The Dow tumbled 323.73 points or 0.92 percent to finish at 34,792, while the NASDAQ rose 19.24 points or 0.13 percent to close at 14,780.53 and the S&P 500 sank 20.49 points or 0.46 percent to end at 4,402.66.
The weakness on Wall Street reflected renewed concerns about the pace of U.S. economic growth after payroll processor ADP said private sector employment increased less than expected in July.
On Friday, the Labor Department will release its more closely watched monthly jobs report, which includes both public and private sector jobs.
A steep drop by shares of General Motors (GM) also weighed on Wall Street, with the auto giant plunging by 8.9 percent to a five-month closing low after the company reported second quarter earnings that missed estimates.
Crude oil prices plummeted again on Wednesday, extending the sharp pullback seen over the two previous sessions following an unexpected increase in crude oil inventories last week. West Texas Intermediate crude sank $2.41 or 3.4 percent to $68.15 a barrel.
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