Chinese stock market expected to stay in a range
(RTTNews) – The Chinese stock market has alternated positive and negative finishes over the past 10 trading days since the end of the two-day decline in which it fell more than 45 points or 0.6%. The Shanghai Composite Index now sits just below the 3,600 point plateau, although it is expected to rebound again on Wednesday.
The global outlook for Asian markets is positive thanks to strong earnings news and rising crude oil prices. The European and US markets were up and Asian stock exchanges are expected to open similarly.
The SCI ended slightly lower on Tuesday following losses in financial stocks, real estate stocks and resource companies.
For the day, the index lost 12.22 points or 0.34% to end at 3,597.64 after trading between 3,589.71 and 3,625.02. The Shenzhen Composite Index fell 8.83 points or 0.36% to end at 2,424.39.
Among assets, Industrial and Commercial Bank of China lost 0.42%, while Bank of China and China Construction Bank both fell 0.33%, China Merchants Bank recovered 1.30%, Bank of Communications fell 0.44%, China Life Insurance fell 1.31%, Jiangxi Copper fell 0.36%, Aluminum Corp of China (Chalco) fell 0.43%, Yanzhou Coal fell 1 , 37%, PetroChina fell 1.02%, China Petroleum and Chemical (Sinopec) sank 0.67%, Huaneng Power lost 2.69%, China Shenhua Energy lost 2.19%, Gemdale plunged 2.89%, Poly Developments fell 3.26%, China Vanke fell 4.23%, and Beijing Capital Development fell 3.82%.
Wall Street’s lead suggests a slight uptick as major averages opened sharply higher on Tuesday, but faded as the day wore on, ending with slight gains.
The Dow added 15.73 points or 0.04% to close at 35,756.88, while the NASDAQ rose 9.01 points or 0.06% to close at 15,235.71 and the S&P 500 gained 8.31 points or 0.18% to finish at 4,574.79.
Wall Street’s initial strength reflected a positive reaction to the latest batch of earnings news from several large companies such as UPS (UPS) and General Electric (GE).
Positive sentiment may also have been generated in reaction to a Commerce Department report showing that new home sales in the United States skyrocketed in September. A separate Conference Board report showed consumer confidence reversed a three-month downtrend in October amid easing concerns over the Delta variant of the coronavirus.
Crude oil futures stabilized higher on Tuesday, recovering from initial losses amid growing signs of a supply shortage and increased demand for oil. West Texas Intermediate crude oil futures for December ended up $ 0.89 or 1.1% at $ 84.65 a barrel.
Closer to home, China will see September figures for industrial profits later today; in August, profits jumped 49.5% year on year.
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