Soft Start Seen For China Stock Market
(RTTNews) - The China stock market on Wednesday ended the two-day winning streak in which it had advanced more than 40 points or 1.3 percent. The Shanghai Composite Index now rests just above the 2,910-point plateau and it's tipped to open under pressure again on Thursday.
The global forecast is soft thanks to ongoing melodrama regarding a possible trade agreement between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.
The SCE finished modestly lower on Wednesday following losses from the insurance companies, financial shares and properties.
For the day, the index sank 22.94 points or 0.78 percent to finish at 2,911.05 after trading between 2,907.42 and 2,930.49. The Shenzhen Composite Index lost 11.64 points or 0.71 percent to end at 1,635.16.
Among the actives, Industrial and Commercial Bank of China shed 0.85 percent, while Bank of Communications retreated 0.90 percent, Bank of China lost 0.28 percent, China Construction Bank skidded 1.11 percent, China Merchants Bank plunged 2.51 percent, China Life Insurance tumbled 1.40 percent, Ping An Insurance dropped 0.94 percent, PetroChina fell 0.36 percent, China Petroleum and Chemical (Sinopec) added 0.41 percent, Baoshan Iron rose 0.19 percent, China Shenhua Energy eased 0.17 percent, Gemdale declined 0.83 percent, Poly Developments lost 0.97 percent and China Vanke was down 0.26 percent.
The lead from Wall Street is negative as stocks opened sharply lower on Wednesday, made back some ground as the day progressed but still finished firmly in the red.
The Dow shed 112.93 points or 0.40 percent to 27,821.09, while the NASDAQ lost 43.93 points or 0.51 percent to 8,526.73 and the S&P 500 fell 11.72 points or 0.38 percent to 3,108.46.
Renewed uncertainty about a U.S.-China trade deal weighed on the markets following reports that trade talks are in danger of hitting an impasse, derailing the Trump administration's plan for a limited phase one deal this year.
However, stocks climbed well off their lows of the session as traders have recently shown a knack for shrugging off negative news on the trade front amid unshakable optimism a deal will eventually get done.
Crude oil futures rebounded Wednesday and recovered Tuesday's heavy losses after official data showed crude stockpiles in the U.S. rose less than expected last week. West Texas Intermediate Crude oil futures for December ended up $1.90 or 3.4 percent at $57.11 a barrel on expiration day.
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