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China Stock Market Tipped To Bounce Higher

The China stock market on Wednesday snapped the two-day winning streak in which it had collected more than 30 points or 1 percent. The Shanghai Composite Index now rests just above the 2,835-point plateau and it's expected to rebound on Thursday.

The global forecast for the Asian markets is upbeat on optimism for reopening economies and the possibility of further stimulus. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished modestly lower on Wednesday as losses from the oil companies were mitigated by support from the financial shares.

For the day, the index fell 9.74 points or 0.34 percent to finish at 2,836.80 after trading between 2,831.93 and 2,849.00. The Shenzhen Composite Index lost 15.30 points or 0.86 percent to end at 1,774.22.

Among the actives, Industrial and Commercial Bank of China collected 0.79 percent, while Bank of China added 0.58 percent, China Construction Bank rose 0.47 percent, China Life Insurance gained 0.67 percent, Ping An Insurance was up 0.20 percent, PetroChina shed 0.92 percent, China Petroleum and Chemical (Sinopec) sank 0.48 percent, China Shenhua Energy spiked 2.17 percent, Gemdale increased 0.08 percent, Poly Developments climbed 0.52 percent, China Vanke advanced 0.27 percent and China Merchants Bank was unchanged.

The lead from Wall Street is firm as stocks moved mostly higher on Wednesday and ended solidly in the green to hit multi-month closing highs.

The Dow surged 553.16 points or 2.21 percent to finish at 25,548.27, while the NASDAQ added 72.14 points or 0.77 percent to end at 9,412.36 and the S&P 500 gained 44.36 points or 1.48 percent to close at 3,036.13.

The strength on Wall Street came as traders continued to express optimism about a quick economic recovery as the country reopens following the coronavirus lockdown.

Adding to the positive sentiment was news that the European Commission plan to launch a massive recovery fund for the euro region to help limit the damage inflicted by the coronavirus pandemic.

Crude oil prices drifted lower on Wednesday as worries about energy demand outlook resurfaced due to rising tensions between the U.S. and China. West Texas Intermediate crude oil futures for July sank $1.54 or 4.5 percent at $32.81 a barrel.

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