Higher Open Expected For China Stock Market

The China stock market bounced higher again on Tuesday, one session after it had ended the two-day winning streak in which it had collected almost 15 points or 0.5 percent. The Shanghai Composite Index now rests just beneath the 2,985-point plateau and it's tipped to extend its gains on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism for an economic recovery. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The SCI finished modestly higher on Tuesday following gains from the financial shares and property stocks, while the oil companies were mixed.

For the day, the index jumped 23.16 points or 0.78 percent to finish at 2,984.67 after trading between 2,965.11 and 2,990.83. The Shenzhen Composite Index spiked 36.40 points or 1.88 percent to end at 1,975.52.

Among the actives, Industrial and Commercial Bank of China eased 0.20 percent, while Bank of China collected 0.29 percent, China Construction Bank added 0.48 percent, China Merchants Bank gained 0.24 percent, China Life Insurance was up 0.04 percent, Ping An Insurance increased 0.55 percent, PetroChina perked 0.48 percent, China Petroleum and Chemical (Sinopec) fell 0.26 percent, Gemdale surged 3.95 percent, Poly Developments soared 1.75 percent, China Vanke rallied 0.85 percent and Baoshan Iron was unchanged.

The lead from Wall Street is broadly positive as stocks moved notably higher on Tuesday, extending the strong upward move seen in the previous session.

The Dow jumped 217.08 points or 0.85 percent to finish at 25,812.88, while the NASDAQ soared 184.61 points or 1.87 percent to end at 10.058.77 and the S&P 500 advanced 47.05 points or 1.54 percent to close at 3,100.29.

Traders continued to express optimism about the economic outlook despite the continued spike in new coronavirus cases across several states.

Adding to the positive sentiment, the Conference Board reported a bigger than expected improvement in consumer confidence in June. Also, a separate report released by MNI Indicators showed a continued contraction in Chicago-area business activity last month.

Traders also kept an eye on Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee regarding the response to the coronavirus pandemic. Powell said output and employment remain far below pre-pandemic levels and cautioned the outlook for the economy is "extraordinarily uncertain."

Crude oil prices drifted lower on Tuesday as worries about the outlook for energy demand persisted due to continued surge in new cases of coronavirus around the world. West Texas Intermediate crude oil futures for August ended down $0.43 or 1.1 percent at $39.27 a barrel.

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