The China stock market has moved higher in two straight sessions, gathering almost 15 points or 0.4 percent in that span. The Shanghai Composite Index now rests just above the 3,575-point plateau although it’s expected to run out of steam on Thursday.
The global forecast for the Asian markets is soft on lockdown concerns resulting from the Omicron strain of COVID-19. The European markets were up and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.
The SCI finished modestly higher on Wednesday following gains from the financial shares, property stocks and resource companies.
For the day, the index rose 13.00 points or 0.36 percent to finish at the daily high of 3,576.89 after moving as low as 3,558.69. The Shenzhen Composite Index added 4.88 points or 0.19 percent to end at 2,524.14
Among the actives, Industrial and Commercial Bank of China collected 0.44 percent, while Bank of China rose 0.33 percent, China Construction Bank added 0.52 percent, China Merchants Bank climbed 1.01 percent, Bank of Communications gained 0.66 percent, China Life Insurance sank 0.74 percent, Jiangxi Copper advanced 0.92 percent, Aluminum Corp of China (Chalco) jumped 1.54 percent, Yanzhou Coal soared4.40 percent, PetroChina spiked 3.18 percent, China Petroleum and Chemical (Sinopec) rallied 2.23 percent, Huaneng Power skyrocketed 7.57 percent, China Shenhua Energy accelerated 2.87 percent, Gemdale surged 3.60 percent, Poly Developments gathered 1.73 percent and China Vanke perked 1.15 percent.
The lead from Wall Street ends up broadly negative as the major averages opened sharply higher on Wednesday but then plummeted deep into the red in the final hour of trade.
The Dow plunged 461.68 points or 1.34 percent to finish at 34,022.04, while the NASDAQ tumbled 283.64 points or 1.83 percent to close at 15,254.05 and the S&P 500 sank 53.96 points or 1.18 percent to end at 4,513.04.
The substantial downturn on Wall Street came after the Center for Disease Control and Prevention revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the U.S.
“The individual, who was fully vaccinated and had mild symptoms that are improving, is self-quarantining and has been since testing positive,” the CDC said. “All close contacts have been contacted and have tested negative.”
Traders largely shrugged off the latest U.S. economic news, including a report from payroll processor ADP showing that private sector employment increased more than expected in November. Also, the Institute for Supply Management said manufacturing activity grew at a slightly faster rate last month.
Crude oil prices showed a strong move to the upside in early trading on Wednesday but came under pressure over the course of the session on news of the Omicron case. Crude for January delivery slumped $0.61 or 0.9 percent $65.57 a barrel, its lowest closing level in three months.
Market Analysis
Rally May Stall For China Stock Market
2021-12-02 01:00:17
