Plus   Neg

China Stock Market May Add To Its Winnings

The China stock market found renewed support on Thursday, one day after it had ended the three-day winning streak in which it had jumped more than 90 points or 3.3 percent. The Shanghai Composite Index now rests just above the 2,835-point plateau and it may extend its gains on Friday.

The global forecast for the Asian markets is upbeat thanks to easing concerns over a global trade war. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The SCI finished sharply higher on Thursday following gains from the financials, insurance companies and properties.

For the day, the index soared 59.89 points or 2.16 percent to finish at 2,837.66 after trading between 2,771.04 and 2,844.19. The Shenzhen Composite Index spiked 42.55 points or 2.74 percent to end at 1,597.17.

Among the actives, China Construction Bank surged 3.57 percent, while Bank of China jumped 1.88 percent, Industrial and Commercial Bank of China soared 3.28 percent, China Merchants Bank climbed 1.09 percent, China Life spiked 2.66 percent, China Shenhua Energy advanced 1.54 percent, China Petroleum and Chemical (Sinopec) shed 0.47 percent, PetroChina added 0.66 percent, Gemdale perked 1.60 percent, China Vanke gathered 1.66 percent and Poly Real Estate gained 1.82 percent.

The lead from Wall Street is positive as stocks showed a strong move back to the upside Thursday, more than offsetting the losses in the previous session.

The Dow jumped 224.44 points or 0.91 percent to finish at 24,924.89, while the NASDAQ surged 107.30 points or 1.39 percent to a record closing high of 7,823.92 and the S&P 500 surged 24.27 points or 0.87 percent to 2,798.29.

The rebound was due to optimism about the upcoming earnings season, with several leading financial companies report results on Friday.

Easing trade concerns between the United States and China also contributed to the rally as traders seem optimistic the continued tariff threats will eventually bring the U.S. and China to the table for talks that result in a long-term trade agreement.

In economic news, the Labor Department said consumer prices edged higher in June, as did core CPI. Also, the Labor Department said first-time claims for unemployment benefits fell more than expected in the week ended July 7.

Crude oil futures failed to rally Thursday after the International Energy Agency's warning that the world's oil supply cushion "might be stretched to the limit" due to production losses. Crude was down 5 cents to $70.33 a barrel.

Closer to home, China will on Friday release June figures for imports, exports and trade balance. Imports are expected to jump 22.2 percent on year after surging 26.0 percent in May. Exports are called higher by an annual 10.4 percent, slowing from 12.6 percent in the previous month. The trade balance is expected to show a surplus of $27.22 billion, up from $24.92 billion a month earlier.

For comments and feedback contact: editorial@rttnews.com

Follow RTT