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Higher Open Predicted For China Stock Market

The China stock market on Wednesday ended the two-day losing streak in which it had stumbled almost 60 points or 2 percent. The Shanghai Composite Index now rests just beneath the 2,940-point plateau although it's looking at additional support on Thursday.

The global forecast for the Asian markets is positive on global trade optimism and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

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

For the day, the index advanced 55.07 points or 1.91 percent to finish at 2,938.68 after trading between 2,902.64 and 2,945.39. The Shenzhen Composite Index surged 35.85 points or 2.32 percent to end at 1,577.92.

Among the actives, Industrial and Commercial Bank of China collected 0.91 percent, while Bank of China spiked 1.90 percent, China Construction Bank jumped 1.45 percent, China Merchants Bank soared 3.29 percent, China Vanke and China Life Insurance both gathered 1.52 percent, Ping An Insurance perked 2.86 percent, PetroChina rose 0.69 percent, China Petroleum and Chemical (Sinopec) advanced 0.75 percent, China Shenhua Energy accelerated 1.03 percent, Gemdale spiked 2.23 percent, Poly Real Estate was up 0.86 percent and CITIC Securities surged 2.11 percent.

The lead from Wall Street is upbeat as stocks shook off initial weakness and moved mostly higher on Wednesday, continuing to recover from Monday's sell-off.

The Dow added 115.97 points or 0.45 percent to end at 25,648.02, while the NASDAQ jumped 87.65 points or 1.13 percent to 7,822.15 and the S&P 500 rose 16.55 points or 0.58 percent to 2,850.96.

The strength on Wall Street reflected a positive reaction to reports President Donald Trump plans to delay imposing steep tariffs on auto imports. Reports indicated Trump plans to delay imposing the auto tariffs by up to six months in order to allow negotiations to continue.

Stocks initially came under pressure a Commerce Department showing an unexpected pullback in U.S. retail sales in April. Negative sentiment was also generated by a Federal Reserve report showing an unexpected drop in industrial output in April.

Crude oil futures inched higher on Wednesday, despite data from the Energy Information Administration that showed an unexpected increase in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for June ended up $0.24 at $62.02 a barrel.

Closer to home, China will see April numbers for new home prices later today; in March, new home prices were up 0.6 percent on month.

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