The China stock market headed has moved higher in two of three trading days since the end of the two-day losing streak in which it had fallen more than 15 points or 0.4 percent. The Shanghai Composite Index now rests just above the 3,485-point plateau although it’s looking at a soft start again on Thursday.
The global forecast for the Asian markets suggests consolidation on concerns over the outlook for interest rates and sinking crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The SCI finished sharply higher on Wednesday following gains from the financial shares and property stocks, while the resource companies were mixed.
For the day, the index gained 38.31 points or 1.11 percent to finish at 3,485.29 after trading between 3,437.69 and 3,487.44. The Shenzhen Composite Index advanced 20.00 points or 0.84 percent to end at 2,412.49.
Among the actives, Industrial and Commercial Bank of China climbed 1.08 percent, while Bank of China advanced 1.00 percent, China Construction Bank perked 1.35 percent, China Merchants Bank skyrocketed 7.09 percent, Bank of Communications collected 1.15 percent, China Life Insurance spiked 4.61 percent, Jiangxi Copper eased 0.04 percent, Aluminum Corp of China (Chalco) added 0.50 percent, Yanzhou Coal retreated 1.45 percent, PetroChina rose 0.22 percent, China Petroleum and Chemical (Sinopec) improved 0.99 percent, China Shenhua Energy declined 1.24 percent, Gemdale was up 0.18 percent, Poly Developments moved higher 0.08 percent, China Vanke rallied 2.60 percent and China Fortune Land Development gained 0.95 percent.
The lead from Wall Street is negative as the major averages opened slightly lower on Wednesday and hugged the line for much of the day but then accelerated into the red toward the close.
The Dow tumbled 382.59 points or 1.08 percent to finish at 34,960.69, while the NASDAQ dropped 130.27 points or 0.89 percent to close at 14,525.91 and the S&P 500 sank 47.81 points or 1.07 percent to end at 4,400.27.
The sell-off on Wall Street came as the Fed minutes revealed most officials at the central bank’s July monetary policy meeting believe it will be appropriate to begin tapering asset purchases this year.
The minutes showed participants also expressed a range of views on the appropriate pace of tapering asset purchases once economic conditions satisfied the “substantial further progress” criterion.
Reflecting the recent surge in new cases of the delta variant of the coronavirus, several participants noted their views on the appropriate path of asset purchases could change if the economic effects of the new strains of the virus turn out to be notably worse than anticipated.
Crude oil prices drifted lower Wednesday on concerns about the outlook for energy demand amid the surge in the delta variant of the coronavirus in several countries. West Texas Intermediate Crude oil futures for September ended down $1.13 or 1.7 percent at $65.46 a barrel, the lowest close since May 21.
Market Analysis
China Bourse Expected To Open In The Red
2021-08-19 01:00:40
