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China Stock Market Tipped To Open In The Green

The China stock market on Monday ended the modest two-day winning streak in which it had collected almost 15 points or 0.5 percent. The Shanghai Composite Index now rests just above the 2,960-point plateau although it's got a solid lead for Tuesday's trade.

The global forecast for the Asian markets is upbeat as hopes for a solid economic recovery outweighed a rising number of coronavirus cases worldwide. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The SCI finished modestly lower on Monday following losses from the properties and oil and insurance companies, while the financials came in mixed.

For the day, the index lost 18.03 points or 0.61 percent to finish at 2,961.52 after trading between 2,951.77 and 2,977.91. The Shenzhen Composite Index fell 8.60 points or 0.44 percent to end at 1,939.12.

Among the actives, Industrial and Commercial Bank of China collected 0.57 percent, while Bank of China added 0.29 percent, China Construction Bank shed 0.63 percent, China Merchants Bank lost 0.77 percent, China Life Insurance plunged 3.65 percent, Ping An Insurance tumbled 1.73 percent, PetroChina slid 0.47 percent, China Petroleum and Chemical (Sinopec) skidded 1.26 percent, Baoshan Iron sank 0.87 percent, Gemdale surrendered 1.86 percent, Poly Developments fell 1.42 percent and China Vanke was down 1.82 percent.

The lead from Wall Street is broadly positive as stocks shook off a soft open Monday to move solidly into the green, offsetting losses from the previous session.

The Dow surged 580 points or 2.32 percent to finish at 25,595.80, while the NASDAQ spiked 116.93 points or 1.20 percent to end at 9,874.15 and the S&P 500 soared 44.19 points or 1.47 percent to close at 3,053.24.

The soft open on Wall Street was in response to rising numbers of new cases of coronavirus in the U.S. and several other parts across the globe. Data from Johns Hopkins University showed the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.

But the markets rebounded when the National Association of Realtors said that pending home sales in the United States surged a record 44.3 percent in May. Also, the Dallas Fed's manufacturing index fell less than expected, further stoking optimism for economic recovery.

Crude oil prices climbed higher Monday despite concerns about the outlook for energy demand amid the spike in the virus. West Texas Intermediate crude futures for August ended up $1.21 or 3.1 percent at $39.70 a barrel.

Closer to home, China will release June results for its manufacturing and non-manufacturing PMIs later this morning. The manufacturing PMI is expected to see a score of 50.4, down from 50.6 in May, while the non-manufacturing PMI is called at 52.5 - down from 53.6 in the previous month.

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