China Stock Market May Spin Its Wheels On Wednesday

The China stock market has finished higher in three straight trading days, gathering more than 70 points or 2 percent along the way. The Shanghai Composite Index now rests just beneath the 3,590-point plateau although it may run out of steam on Wednesday.

The global forecast for the Asian markets is mixed, with support from oil and financial stocks likely to be undercut by weakness from technology shares. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to follow the latter lead.

The SCI finished slightly higher on Tuesday following gains from the financial shares, property stocks and resource companies.

For the day, the index added 7.01 points or 0.20 percent to finish at 3,589.09 after trading between 3,577.36 and 3,598.38. The Shenzhen Composite Index rose 5.21 points or 0.21 percent to end at 2,520.37.

Among the actives, Bank of China collected 0.33 percent, while China Construction Bank rose 0.17 percent, China Merchants Bank was up 0.12 percent, Bank of Communications perked 0.22 percent, Jiangxi Copper added 0.38 percent, Yanzhou Coal jumped 1.91 percent, PetroChina gathered 0.21 percent, China Petroleum and Chemical (Sinopec) fell 0.24 percent, Huaneng Power slid 0.34 percent, China Shenhua Energy climbed 1.08 percent, Gemdale spiked 1.84 percent, Poly Developments rallied 2.06 percent, China Vanke gained 0.10 percent, Beijing Capital Development increased 1.07 percent and Industrial and Commercial Bank of China, China Life Insurance, Aluminum Corp of China (Chalco) and Minsheng Bank were unchanged.

The lead from Wall Street remains inconsistent as the Dow and S&P spent Tuesday bouncing back and forth across the unchanged line before ending higher. The NASDAQ spent most of the session in the red and finished that way.

The Dow jumped 194.55 points or 0.55 percent to finish at 35,813.80, while the NASDAQ slipped 79.62 points or 0.50 percent to close at 15,775.14 and the S&P 500 rose 7.76 points or 0.17 percent to end at 4,690.70.

The tech-heavy NASDAQ pulled back further off the record intraday high set in early trading on Monday, as a continued increase in treasury yields weighed on high-growth tech stocks.

Yields have moved notably higher since President Joe Biden announced his intention to nominate Jerome Powell for a second term as Fed Chair. With the upward move, the yield on the benchmark ten-year note ended at its highest closing level in a month.

On the other hand, the Dow benefited from strong gains by financial giants Goldman Sachs (GS) and JPMorgan Chase (JPM).

Crude oil futures settled sharply higher on Tuesday, rebounding strongly from earlier losses over the outlook for energy demand due to rising coronavirus cases in Europe, and plans by the U.S. to release oil from the Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for January still ended higher by $1.75 or 2.3 percent at $78.50 a barrel.

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