China Shares Expected To Bounce Higher Again On Tuesday

The China stock market on Monday ended the three-day winning streak in which it had climbed more than 35 points or 1.2 percent. The Shanghai Composite Index now rests just beneath the 3,230-point plateau although it figures to rebound on Tuesday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The SCI finished slightly lower on Monday following losses from the financials and mixed performances from the properties, resource and energy stocks.

For the day, the index eased 2.57 points or 0.08 percent to finish at 3,228.83 after trading between 3,210.71 and 3,239.44. The Shenzhen Composite Index gained 14.73 points or 0.73 percent to end at 2,021.18.

Among the actives, Industrial and Commercial Bank of China tumbled 1.97 percent, while Bank of China tanked 2.18 percent, China Construction Bank retreated 1.52 percent, China Merchants Bank eased 0.03 percent, Bank of Communications plunged 2.64 percent, China Life Insurance sank 0.82 percent, Jiangxi Copper dipped 0.05 percent, Aluminum Corp of China (Chalco) added 0.36 percent, Yankuang Energy advanced 0.92 percent, PetroChina skidded 1.02 percent, China Petroleum and Chemical (Sinopec) surrendered 2.36 percent, Huaneng Power plummeted 6.48 percent, China Shenhua Energy strengthened 1.29 percent, Gemdale climbed 1.05 percent, Poly Developments gained 0.37 percent, China Vanke lost 0.68 percent and China Fortune Land slumped 1.68 percent.

The lead from Wall Street is upbeat as the major averages opened in the green on Monday and accelerated as the day progressed, ending near session highs.

The Dow climbed 189.55 points or 0.56 percent to finish at 34,066.33, while the NASDAQ rallied 202.78 points or 1.53 percent to end at 13,461.92 and the S&P 500 gained 40.07 points or 0.93 percent to close at 4,338.93.

The strength on Wall Street comes as traders look ahead to the Federal Reserve’s highly anticipated monetary policy announcement on Wednesday.

The Fed is widely expected to pause its recent interest rate increases but is also likely to reiterate its commitment to bringing inflation down to its 2 percent target.

The Fed’s accompanying statement is likely to have a significant impact on the outlook for rates along with some closely watched inflation data due to be released in the coming days.

Oil prices fell sharply Monday on concerns about the outlook for energy demand following a downward revision in the crude oil price forecast by Goldman Sachs. West Texas Intermediate Crude oil futures for July tumbled $3.05 or 4.4 percent at $67.12 a barrel, a three-month low.