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China Bourse May See Continued Support On Wednesday

The China stock market has alternated between positive and negative finishes through the last five trading days, stretching back before the National Day holiday week. The Shanghai Composite Index now rests just above the 2,720-point plateau and it may open slightly higher again on Wednesday.

The global forecast for the Asian markets is unclear, with concerns over the outlook for interest rates offset by support from crude oil prices. The European markets were slightly higher and the Asian bourses were mixed and little changed - and the Asian markets figure to follow the latter lead.

The SCI finished slightly higher on Tuesday as gains from the energy producers were capped by weakness from the financials and properties.

For the day, the index gained 4.50 points or 0.17 percent to finish at 2,721.01 after trading between 2,711.20 and 2,734.31. The Shenzhen Composite Index eased 1.19 points or 0.09 percent to end at 1,385.09.

Among the actives, Bank of China shed 0.83 percent, while Industrial and Commercial Bank of China lost 0.54 percent, China Merchants Bank eased 0.10 percent, China Construction Bank fell 0.43 percent, China Petroleum and Chemical (Sinopec) added 0.60 percent, PetroChina surged 4.42 percent, China Shenhua Energy soared 2.71 percent, Poly Real Estate skidded 1.15 percent, China Vanke skidded 1.04 percent and China Minsheng Bank, China Life Insurance and Gemdale were unchanged.

The lead from Wall Street offers little guidance as stocks fluctuated on Tuesday, bouncing back and forth across the unchanged line before closing mixed for the second straight day.

The Dow shed 56.21 points or 0.21 percent to finish at 26,430.57, while the NASDAQ added 2.07 points or 0.03 percent to 7,738.02 and the S&P fell 4.09 points or 0.14 percent to 2,880.34.

The choppy trading on Wall Street came as traders kept an eye on treasuries amid renewed concerns about the outlook for interest rates. With the bond markets re-opening after Monday's Columbus Day holiday, treasury yields turned lower after an initial move higher.

Traders shrugged off news that the International Monetary Fund lowered its forecast for U.S. and Chinese economic growth, citing the "negative effect of recent tariff actions."

Crude oil prices moved up on Tuesday amid reports of falling crude exports from Iran ahead of the U.S. sanctions against the country. Crude oil futures for November delivery ended up $0.67 or 0.9 percent at $74.96 a barrel.

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