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China Stocks: Resistance Expected At 2,900 Points

The China stock market has moved higher in back-to-back trading days, collecting more than 30 points or 1 percent along the way. The Shanghai Composite Index now rests just beneath the 2,900-point plateau although it's tipped to open in the red on Wednesday.

The global forecast for the Asian markets suggests profit taking after multiple sessions of gain, as well as ongoing concerns over the lingering effects of Covid-19. The European and U.S. markets were down and the Asian bourses are tipped to follow in similar fashion.

The SCI finished modestly higher on Tuesday as gains from the financial shares and oil and insurance companies were capped by weakness from the property sector.

For the day, the index gained 23.16 points or 0.81 percent to finish at 2,898.58 after trading between 2,887.58 and 2,900.22. The Shenzhen Composite Index jumped 22.73 points or 1.26 percent to end at 1,823.57.

Among the actives, Industrial and Commercial Bank of China collected 0.39 percent, while Bank of China added 0.29 percent, China Construction Bank climbed 1.11 percent, China Merchants Bank jumped 1.39 percent, China Life Insurance advanced 1.19 percent, Ping An Insurance gained 0.97 percent, PetroChina rose 0.45 percent, China Petroleum and Chemical (Sinopec) increased 0.46 percent, China Shenhua Energy soared 2.81 percent, Gemdale tumbled 1.76 percent, Poly Developments lost 0.71 percent and China Vanke fell 0.31 percent.

The lead from Wall Street is negative as stocks turned in a lackluster performance of Tuesday before coming under pressure going into the close - offsetting gains from the previous session.

The Dow shed 390.51 points or 1.59 percent to finish at 24,206.86, while the NASDAQ lost 49.72 points or 0.54 percent to 9.185.10 and the S&P 500 fell 30.97 points or 1.05 percent to 2,922.94.

The late-day weakness on Wall Street came as traders cashed in on the rally seen on Monday, which lifted the Nasdaq and the S&P 500 to their best closing levels in over two months.

Traders have recently expressed considerable optimism about the economy reopening, although lingering concerns about the coronavirus pandemic led to some caution.

Traders were also reacting to comments from Federal Reserve Chair Jerome Powell, who reaffirmed the central bank will provide more support to the economy.

Crude oil prices were higher Tuesday, supported by increased demand and output cuts on the expiration of the front-month contract. West Texas Intermediate Crude oil futures expired at $32.50 a barrel, gaining $0.68 or 2.1 percent. July series WTI contract advanced $0.31 or 1 percent to settle at $31.96 a barrel.

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