The China stock market has finished higher in two of three trading days since the end of the two-day losing streak in which it had retreated almost 60 points or 2/7 percent. The Shanghai Composite Index now rests just above the 3,550-point plateau and it may add to its winnings on Thursday.
The global forecast for the Asian markets is mildly positive, with stimulus optimism tempered by sinking crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.
The SCI finished modestly higher on Wednesday as gains from the broader market offset losses from the financials, properties and resource stocks.
For the day, the index gained 23.46 points or 0.66 percent to finish at 3,553.72 after trading between 3,504.47 and 3,557.88. The Shenzhen Composite Index jumped 40.40 points or 1.68 percent to end at 2,446.99.
Among the actives, Industrial and Commercial Bank of China fell 0.20 percent, while Bank of China shed 0.32 percent, China Construction Bank slid 0.30 percent, China Merchants Bank dipped 0.21 percent, Bank of Communications lost 0.41 percent, China Life Insurance dropped 0.83 percent, Jiangxi Copper sank 0.47 percent, Aluminum Corp of China (Chalco) eased 0.19 percent, Yanzhou Coal tanked 2.14 percent, PetroChina plunged 2.48 percent, China Petroleum and Chemical (Sinopec) skidded 1.16 percent, China Shenhua Energy was down 0.10 percent, Gemdale retreated 1.29 percent, Poly Developments declined 1.14 percent and China Vanke tumbled 1.80 percent.
The lead from Wall Street is cautiously optimistic as the major averages opened higher on Wednesday but then spent the rest of the session hugging both sides of the unchanged line before ending slightly in the green.
The Dow gained 104.42 points or 0.30 percent to finish at 34,681.79, while the NASDAQ rose 1.42 points or 0.01 percent to end at 14,665.06 and the S&P 500 added 14.59 points or 0.34 percent to close at 4,358.13.
The higher close on Wall Street came as the minutes of the Federal Reserve’s latest monetary policy meeting signaled the central bank will not be in a hurry to begin scaling back its asset purchase program.
The minutes of the June meeting reiterated Fed Chair Jerome Powell’s view that “substantial further progress” towards the goals of maximum employment and price stability has not yet been met.
The Fed has repeatedly said it plans to continue to its asset purchases at a rate of at least $120 billion per month until “substantial further progress” has been made toward its goals.
Crude oil prices tumbled on Wednesday amid concerns that several leading oil producers will increase output following a disagreement over policy. West Texas Intermediate Crude oil futures for August ended down $1.17 or 1.6 percent at $72.20 a barrel.
Market Analysis
Additional Support Anticipated For China Stock Market
2021-07-08 01:00:11
