Saturday, December 2, 2023

Additional Support Anticipated For China Stock Market

Must read

(RTTNews) – The China stock market has moved higher in consecutive trading days, gathering almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just beneath the 3,070-point plateau and it’s tipped to open in the green again on Tuesday.

The global forecast for the Asian markets is upbeat on continued optimism over the outlook for interest rates. The European markets were mixed and little changed and the U.S. bourses were solidly higher and the Asian markets are tipped to follow the latter lead.

The SCI finished modestly higher on Monday following gains from the financial shares and oil companies, while the properties were soft and the resource companies were mixed.

For the day, the index gained 13.95 points or 0.46 percent to finish at 3,068.32 after trading between 3,043.51 and 3,072.51. The Shenzhen Composite Index rose 12.53 points or 0.65 percent to end at 1,936.49.

Among the actives, Industrial and Commercial Bank of China collected 0.63 percent, while Bank of China added 0.51 percent, China Construction Bank perked 0.16 percent, China Merchants Bank advanced 0.82 percent, Bank of Communications climbed 1.04 percent, China Life Insurance sank 0.67 percent, Jiangxi Copper rose 0.22 percent, Aluminum Corp of China (Chalco) skidded 1.03 percent, Yankuang Energy gained 0.30 percent, PetroChina rallied 0.85 percent, China Petroleum and Chemical (Sinopec) improved 0.92 percent, Huaneng Power dropped 0.78 percent, China Shenhua Energy slipped 0.26 percent, Gemdale lost 0.73 percent, Poly Developments slumped 0.55 percent and China Vanke fell 0.43 percent.

The lead from Wall Street is solid as the major averages opened modestly higher on Monday but accelerated throughout the day, ending near session highs.

The Dow jumped 203.76 points or 0.58 percent to finish at 35,151.04, while the NASDAQ rallied 159.05 points or 1.13 percent to close at 14,284.53 and the S&P 500 gained 33.36 points or 0.74 percent to end at 4,547.38.

The strength on Wall Street reflected recent upward momentum, which comes amid ongoing optimism about the outlook for interest rates. Recent data showing signs of easing inflation has reinforced investor expectations that the Federal Reserve will leave rates unchanged at upcoming meetings.

Stocks saw further upside in afternoon trading as treasury yields pulled back following the release of the results of the Treasury Department’s auction of $16 billion worth of 20-year bonds.

In economic news, the Conference Board released a report showing its reading on leading U.S. economic indicators fell by more than expected in October.

Crude oil prices rose sharply on Monday amid expectations that OPEC will further extend its voluntary output cuts next week, while the dollar’s weakness also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures for January ended higher by $1.79 or 2.4 percent at $77.83 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More articles

Leave a Reply

Latest article