The China stock market has tracked lower in back-to-back sessions, sinking almost 60 points or 1.7 percent along the way. The Shanghai Composite Index now rests just above the 3,655-point plateau although it’s expected to stop the bleeding on Thursday.
The global forecast for the Asian markets is cautiously optimistic, riding a spike in crude oil prices and some bargain hunting. The European markets were down and the U.S. bourses were up and the Asian markets figure to split the difference.
The SCI finished slightly lower on Wednesday following losses from the financials, properties and resource stocks.
For the day, the index fell 6.38 points or 0.17 percent to finish at 3,656.22 after trading between 3,638.32 and 3,677.53. The Shenzhen Composite Index dipped 2.76 points or 0.11 percent to end at 2,486.13.
Among the actives, Industrial and Commercial Bank of China shed 0.64 percent, while China Construction Bank lost 0.49 percent, China Merchants Bank skidded 1.34 percent, China Life Insurance dipped 0.29 percent, Jiangxi Copper sank 0.77 percent, Aluminum Corp of China (Chalco) plunged 3.21 percent, Yanzhou Coal tanked 2.58 percent, PetroChina surged 4.90 percent, China Petroleum and Chemical (Sinopec) jumped 1.72 percent, Anhui Conch Cement plummeted 5.71 percent, China Shenhua Energy retreated 1.25 percent, Gemdale cratered 9.02 percent, Poly Developments surrendered 2.85 percent, China Vanke dropped 2.73 percent and Bank of China and Bank of Communications were unchanged.
The lead from Wall Street is positive as the major averages opened lower on Wednesday but quickly turned higher, continuing to pick up steam heading into the close.
The Dow spiked 236.82 points or 0.68 percent to finish at 34,814.39, while the NASDAQ jumped 123.77 points or 0.82 percent to end at 15,161.53 and the S&P 500 gained 37.65 points or 0.85 percent to close at 4,480.70.
The strength that emerged on Wall Street may partly have reflected bargain hunting following the downward trend seen over the past several sessions.
Traders were also digesting the latest batch of data, including a report from the Fed showing industrial production in the U.S. increased less than expected in August. Also, the Labor Department said U.S. import prices fell last month for the first time since October 2020.
Crude oil prices rose sharply Wednesday, lifting the most active crude futures contracts to a nearly seven-week closing high after data showed a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for October ended up by $2.15 or 3.1 percent at $72.61 a barrel, the highest settlement since July 30.
Market Analysis
China Stock Market Tipped To Halt Slide
2021-09-16 00:30:12
