The China stock market on Wednesday halted the modest two-day winning streak in which it had gathered more than 40 points or 1.5 percent en route to a four-week closing high. The Shanghai Composite Index finished just above the 2,695-point plateau, although now investors are anticipating a mild rebound at the opening of trade on Thursday.
The global forecast for the Asian markets is cautiously optimistic, thanks to a rebound in the price of oil. Technology and financial stocks also may provide support, while gold stocks may see profit taking as the precious metal comes down from a record high. The European and U.S. markets ended firmly higher, and the Asian markets are also expected to track to the upside.
The SCI finished slightly lower on Wednesday, nudged into the red by weakness from the financials.
For the day, the index eased 3.07 points or 0.11 percent to finish at 2,695.29 after trading between 2,674.32 and 2,695.84 on turnover of 11.35 billion yuan. The Shenzhen Composite Index added 0.75 percent to finish at 1,195.48 on turnover of 8 billion yuan.
Among the gainers, Qinghai Salt Lake Industry added 5.94 percent, while Qinghai Salt Lake Potash climbed 4.56 percent, Sinochem gained 1.17 percent, Gansu Qilianshan Cement Group collected 4.58 percent, Tangshan Jidong Cement gathered 2.54 percent, Xinjiang Tianshan Cement was up 2.15 percent, Sichuan Datong Gas Development jumped 4.37 percent and Changchun Gas climbed 3.41 percent.
Finishing lower, Industrial Bank shed 3.58 percent, while Bank of Nanjing declined 2.68 percent and Shenzhen Development Bank lost 2.16 percent.
Wall Street puts forth a positive lead as stocks rose by solid margins on Wednesday amid some relief buying. That followed news of continued albeit slower U.S. economic recovery as seen by the Federal Reserve and solid demand for Portugal's bond offerings.
In the afternoon, stocks saw shaky trading but managed to hold on to the bulk of their gains as the Fed's Beige Book stated that the U.S. economy continued its modest expansion, although it noted that a drop-off in the strength of economic data indicated a slower pace of recovery.
The Fed noted that modest economic growth was the most common characterization of overall conditions in the period from mid-July through the end of August. Specifically, the report said consumer spending a saw slight increase on balance, although several districts noted an emphasis on necessities and lower-priced goods. While manufacturing activity also continued to expand, several districts reported a slowdown in the pace of growth.
Early buying interest was generated after the Portuguese government successfully auctioned just over 1 billion euros worth of three and ten-year bonds, with the sales attracting solid demand.
The markets also digested comments from President Barack Obama, who spoke in Ohio regarding his plan to extend tax cuts for the middle class, increase business tax write-offs, and spend an additional $50 billion on infrastructure projects.
In corporate news, British telecom giant Vodafone Plc (VOD) confirmed that it has agreed to sell its entire 3.2 percent interest in China Mobile for 4.3 billion pounds, or $6.6 billion. Vodafone will continue its commercial and technology cooperation with China Mobile. Meanwhile, packaged food company General Mills Inc. (GIS) said it expects its first-quarter results to be in line with its expectations and also reaffirmed its fiscal 2011 adjusted earnings forecast.
The major averages saw considerable volatility in late-session dealing but still managed to close on the upside. The Dow gained 46.32 points or 0.4 percent to end at 10,387.01, the NASDAQ advanced by 19.98 points or 0.9 percent to 2,228.87 and the S&P 500 rose by 7.03 points or 0.6 percent to 1,098.87.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.