The China stock market on Wednesday wrote a finish to the three-day losing streak in which it had fallen almost 30 points or 0.8 percent. The Shanghai Composite Index now rests just above the 3,560-point plateau and it’s expected to add to its winnings on Thursday.
The global forecast for the Asian markets is positive, led by a strong rebound in energy stocks. The European and U.S. markets were up and the Asian bourses are predicted to follow that lead.
The SCI finished modestly higher on Wednesday as gains from the resource stocks were dented by weakness from the financials and properties.
For the day, the index gained 25.87 points or 0.73 percent to finish at 3,562.66 after trading between 3,543.05 and 3,569.09. The Shenzhen Composite Index jumped 35.79 points or 1.46 percent to end at 2,492.54.
Among the actives, Industrial and Commercial Bank of China and China Merchants Bank both shed 0.42 percent, while China Construction Bank skidded 1.00 percent, China Life Insurance eased 0.19 percent, Jiangxi Copper climbed 1.05 percent, Aluminum Corp of China (Chalco) rallied 2.47 percent, Yanzhou Coal plunged 3.20 percent, PetroChina lost 0.43 percent, China Petroleum and Chemical (Sinopec) retreated 1.23 percent, Baoshan Iron added 0.52 percent, Gemdale tanked 2.37 percent, Poly Developments declined 1.75 percent, China Vanke surrendered 1.56 percent, Beijing Capital Development sank 0.78 percent and Bank of China and Bank of Communications were unchanged.
The lead from Wall Street is solid as the major averages opened higher on Wednesday and remained firmly in the green throughout the session.
The Dow jumped 286.01 points or 0.83 percent to finish at 34,798.00, while the NASDAQ climbed 133.08 points or 0.92 percent to end at 14,631.95 and the S&P 500 added 35.63 points or 0.82 percent to close at 4,358.69.
The continued strength on Wall Street reflected a positive reaction to the latest batch of earnings news from several big-name companies including Coca-Cola (KO), Verizon (VZ) and Johnson & Johnson (JNJ), although Netflix (NFLX) disappointed.
Energy stocks spiked as crude oil futures settled sharply higher on Wednesday, rebounding strongly after suffering a sharp drop earlier in the week. West Texas Intermediate crude oil futures for September ended up $3.10 or 4.6 percent at $70.30 a barrel.
Significant strength was also visible among airline stocks, as reflected by the 3.2 percent jump by the NYSE Arca Airline Index. The index continued to rebound after ending Monday’s trading at a five-month closing low.
Market Analysis
China Stock Market Tipped To Open In The Green
2021-07-22 01:00:18
