Win Streak May Continue For China Stock Market
(RTTNews) - The China stock market has moved higher in back-to-back sessions, gathering almost 55 points or 1.8 percent along the way. The Shanghai Composite Index now sits just above the 3,235-point plateau and it's tipped to open in the green again on Tuesday.
The global forecast for the Asian markets suggests mild support thanks to bargain hunting and supported by crude oil prices. The European and U.S. markets were modestly higher and the Asian bourses are tipped to open in similar fashion.
The SCI finished sharply higher on Monday following gains from the resource, oil and technology stocks, while the financials were mixed and the properties were soft.
For the day, the index climbed 40.91 points or 1.28 percent to finish at 3,236.37 after trading between 3,181.65 and 3,237.07. The Shenzhen Composite Index spiked 47.05 points or 2.32 percent to end at 2,073.55.
Among the actives, RoboTechnik skyrocketed 7.01 percent, while C&S Paper soared 4.02 percent, Industrial and Commercial Bank of China shed 0.65 percent, Bank of China fell 0.31 percent, China Construction Bank dropped 0.84 percent, China Merchants Bank rose 0.13 percent, China Minsheng Bank collected 0.53 percent, Bank of Communications lost 0.61 percent, China Life Insurance slid 0.24 percent, Jiangxi Copper spiked 2.93 percent, Aluminum Corp of China (Chalco) jumped 1.59 percent, Yankuang Energy strengthened 1.58 percent, PetroChina perked 0.55 percent, China Petroleum and Chemical (Sinopec) added 0.45 percent, Huaneng Power declined 0.56 percent, China Shenhua Energy rallied 2.53 percent, Gemdale tanked 2.73 percent, Poly Developments tumbled 2.42 percent, China Vanke plunged 2.37 percent and China Fortune Land was unchanged.
The lead from Wall Street ends up positive as the major averages opened sharply higher on Monday but faded throughout the session, although they still managed to finish with mild gains.
The Dow added 16.08 points or 0.05 percent to finish at 32,915.78, while the NASDAQ gained 48.64 points or 0.40 percent to close at 12,061.37 and the S&P 500 rose 12.89 points or 0.31 percent to end at 4,121.43.
The early strength on Wall Street came as traders picked up stocks at reduced levels following the sharp pullback last Friday.
Strength in overseas markets has carried over on to Wall Street amid reports of a possible U.S. tariff cut on Chinese goods.
But traders may be reluctant to take long positions ahead of consumer price inflation data due out later in the week. The numbers will be in the spotlight as traders focus on the Federal Reserve's monetary policy tightening.
Crude oil futures pared early gains and settled lower on Monday after Saudi Arabia substantially raised crude prices for July. West Texas Intermediate Crude oil futures for July ended lower by $0.37 or 0.3 percent at $118.50 after climbing to $121 a barrel earlier in the session.
