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Rally May Stall For China Stock Market

The China stock market has moved higher in three straight sessions, advancing more than 60 points or 2 percent along the way. The Shanghai Composite Index now rests just above the 2,990-point plateau although it may spin its wheels on Wednesday.

The global forecast for the Asian markets is murky thanks to ambiguity regarding trade and interest rates. The European markets were slightly higher and the U.S. bourses were mixed and little changed and the Asian markets figure to see little movement as well.

The SCI finished modestly higher on Tuesday following gains from the financials, properties and oil companies.

For the day, the index gained 16.07 points or 0.54 percent to finish at 2,991.56 after trading between 2,968.03 and 3,008.31. The Shenzhen Composite Index added 8.90 points or 0.54 percent to end at 1,655.61.

Among the actives, Industrial and Commercial Bank of China collected 0.34 percent, while Bank of China and China Construction Bank both added 0.54 percent, China Merchants Bank climbed 1.29 percent, China Life Insurance spiked 2.70 percent, Ping An Insurance fell 0.25 percent, PetroChina rose 0.17 percent, China Petroleum and Chemical (Sinopec) gained 0.61 percent, China Shenhua Energy was up 0.22 percent, Gemdale accelerated 1.81 percent, Poly Developments jumped 1.22 percent, China Vanke perked 0.07 percent and CITIC Securities soared 1.62 percent.

The lead from Wall Street offers little clarity as stocks showed a lack of direction on Tuesday, bouncing back and forth across the unchanged line before ending mixed.

The Dow added 30.52 points or 0.11 percent to 27,492.63, while the NASDAQ rose 1.48 points or 0.02 percent to 8,434.60 and the S&P 500 fell 3.65 points or 0.12 percent to 3,074.62.

The early strength on Wall Street came amid continued optimism about a potential U.S.-China trade deal, with President Donald Trump and Chinese President Xi Jinping expected to sign phase one of an agreement sometime this month.

Buying interest was subdued, however, as traders wait for more concrete developments before continuing to buy stocks following the recent run to record highs.

But stocks ebbed following a report from the Institute for Supply Management showing better than expected growth in the U.S. service sector in October. The data raised concerns about the outlook for interest rates after the Federal Reserve said last week it's putting further rate cuts on hold.

Crude oil for December delivery is extending to recent gains on continued optimism about the outlook for global demand. West Texas Intermediate advanced $0.70 or 1.24 percent to $57.22.

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