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Win Streak Expected To Continue For China Stock Market

The China stock market has finished higher in seven straight sessions, accelerating more than 340 points or 10.7 percent along the way. The Shanghai Composite Index now sits just above the 3,400-point plateau and it's likely to extend its gains again on Thursday.

The global forecast for the Asian markets is cautiously optimistic, with optimism for economic recovery tempered by renewed coronavirus fears. The European markets were down and the U.S. markets were up and the Asian markets figure to split the difference.

The SCI finished sharply higher on Wednesday following gains from the insurance companies, losses from the financials and oil companies and a mixed picture from the properties.

For the day, the index soared 58.10 points or 1.74 percent to finish at 3,403.44 after trading between 3,327.71 and 3,421.53. The Shenzhen Composite Index advanced 40.68 points or 1.88 percent to end at 2,198.62.

Among the actives, Industrial and Commercial Bank of China tumbled 1.62 percent, while China Construction Bank shed 0.28 percent, China Merchants Bank skidded 1.36 percent, China Life Insurance skyrocketed 10.00 percent, Ping An Insurance spiked 2.97 percent, PetroChina lost 0.64 percent, China Petroleum and Chemical (Sinopec) fell 0.47 percent, China Shenhua Energy sank 0.53 percent, Gemdale tanked 1.83 percent, Poly Developments added 0.74 percent, China Vanke gained 0.33 percent and Bank of China and China Minsheng Banking were unchanged.

The lead from Wall Street is positive as stocks fluctuated early Wednesday before moving firmly to the upside as the day progressed.

The Dow gained 177.10 points or 0.68 percent to finish at 26,067.28, while the NASDAQ spiked 148.61 points or 1.44 percent to end at 10,492.50 and the S&P 500 collected 24.62 points or 0.78 percent to close at 3,169.94.

The choppy trading seen for much of the session came amid relatively light volume, with a lack of major U.S. economic news keeping traders on the sidelines.

The NASDAQ continued to benefit from strong gains by tech giants like Apple (AAPL), which surged 2.3 percent after Deutsche Bank raised its price target on the company's stock. Gains by Amazon (AMZN), Netflix (NFLX) and Facebook (FB) also helped lift the tech-heavy index to a new record closing high.

Crude oil prices rose Wednesday as a slightly higher demand forecast for next year by the Energy Information Administration helped offset a sharp jump in crude inventories last week. West Texas Intermediate Crude oil futures for August ended up $0.28 or 0.7 percent at $40.90 a barrel.

Closer to home, China will release June figures for consumer and producer prices later this morning. Overall inflation is expected to rise 2.5 percent on year and be flat on month after gaining an annual 2.4 percent and sinking 0.8 percent on month in May. Producer prices are expected to drop 3.2 percent on year after retreating 3.7 percent in the previous month.

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