China Stock Market Tipped To Open In The Green

The China stock market has alternated between positive and negative finishes through the last six trading days since the end of the four-day losing streak in which it had plunged more than 210 points or 6.1 percent. The Shanghai Composite Index now rests just above the 3,465-point plateau although it’s likely to open higher again on Friday.

The global forecast for the Asian markets is upbeat, with support expected from oil and technology stocks in particular. The European markets were mixed and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The SCI finished modestly lower on Thursday following losses from the resource stocks, support from the properties and a mixed picture from the financials.

For the day, the index fell 10.67 points or 0.31 percent to finish at 3,466.55 after trading between 3,449.39 and 3,486.16. The Shenzhen Composite Index sank 18.58 points or 0.75 percent to end at 2,447.04.

Among the actives, Industrial and Commercial Bank of China dipped 0.22 percent, while Bank of China collected 0.34 percent, China Construction Bank eased 0.18 percent, China Merchants Bank shed 0.53 percent, Bank of Communications rose 0.23 percent, China Life Insurance fell 0.32 percent, Jiangxi Copper plummeted 4.38 percent, Aluminum Corp of China (Chalco) plunged 3.19 percent, Yanzhou Coal tanked 2.17 percent, PetroChina skidded 1.08 percent, China Petroleum and Chemical (Sinopec) slid 0.25 percent, China Shenhua Energy added 0.46 percent, Gemdale surged 5.24 percent, Poly Developments soared 4.90 percent, China Vanke rallied 2.14 percent, Beijing Capital Development gained 0.65 percent and China Minsheng Bank was unchanged.

The lead from Wall Street is solid as the major averages opened firmly in the green and stayed there throughout the session.

The Dow jumped 271.58 points or 0.78 percent to finish at 35,064.25, while the NASDAQ climbed 114.58 points or 0.78 percent to close at 14,895.12 and the S&P 500 perked 26.44 points or 0.60 percent to end at 4,429.10.

The strength on Wall Street followed the Labor Department report showing a modest decrease in first-time claims for U.S. unemployment benefits last week, sparking optimism ahead of the closely-watched monthly job report later today.

Also, the Commerce Department said the U.S. trade deficit widened more than expected in June, reaching a new record high.

Crude oil prices rebounded Thursday, regaining ground after moving sharply lower over the three previous sessions. After plummeting by 7.8 percent so far this week, crude for September delivery advanced $0.94 or 1.4 percent to $69.09 a barrel.