The China stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day slide in which it had retreated more than 45 points or 0.6 percent. The Shanghai Composite Index now rests just above the 3,585-point plateau and it’s expected to open higher again on Thursday.
The global forecast for the Asian markets is cautiously optimistic on encouraging corporate results and rising crude oil prices. The European and U.S. markets mostly saw mild upside and the Asian bourses are tipped to follow suit.
The SCI finished modestly lower on Wednesday following losses from the financials, properties and resource stocks.
For the day, the index dipped 6.15 points or 0.17 percent to finish at 3,587.00 after trading between 3,574.30 and 3,596.05. The Shenzhen Composite Index slid 2.60 points or 0.11 percent to end at 2,420.04.
Among the actives, Industrial and Commercial Bank of China shed 0.42 percent, while China Construction Bank lost 0.50 percent, China Merchants Bank dropped 0.91 percent, Bank of Communications dipped 0.22 percent, China Minsheng Bank eased 026 percent, China Life Insurance fell 0.54 percent, Jiangxi Copper sank 3.72 percent, Aluminum Corp of China (Chalco) tanked 2.74 percent, Yanzhou Coal plummeted by the 10 percent daily limit, PetroChina retreated 1.85 percent, China Petroleum and Chemical (Sinopec) tumbled 1.77 percent, Huaneng Power skyrocketed 10.04 percent, China Shenhua Energy plunged 6.35 percent, Gemdale surrendered 2.71 percent, Poly Developments skidded 1.01 percent, China Vanke declined 1.48 percent and Bank of China was unchanged.
The lead from Wall Street is mostly positive as the major averages opened higher on Wednesday. The Dow and S&P 500 remained well in the green and finished that way, while the NASDAQ hugged the unchanged line and ended slightly in the red.
The Dow climbed 152.03 points or 0.43 percent to finish at 35,609.34, while the NASDAQ dipped 7.41 points or 0.05 percent to close at 15,121.68 and the S&P 500 rose 16.56 points or 0.37 percent to end at 4,536.19.
The continued strength on Wall Street came as traders reacted positively to another batch of largely upbeat corporate earnings news.
Traders largely shrugged off the Federal Reserve’s Beige Book, which noted the pace of U.S. economic growth has recently slowed due to supply chain disruptions, labor shortages, and uncertainty around the Delta variant of COVID-19.
The Fed also said employment increased at a modest to moderate rate in recent weeks, as demand for workers was high, but labor growth was dampened by a low supply of workers.
Crude oil prices climbed higher on Wednesday after data showed a drop in U.S. crude inventories last week, while increased demand also supported prices. West Texas Intermediate Crude oil futures for December ended up by $0.98 or 1.2 percent at $83.42 a barrel.
Market Analysis
China Stock Market Tipped To Remain Rangebound
2021-10-21 01:00:10
