logo
  

China Stock Market Due For Positive Bounce On Tuesday

The China stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had advanced almost 50 points or 1.6 percent. The Shanghai Composite Index now sits just above the 3,315-point plateau although it's expected to rebound on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, with support expected from the financials, technology stocks and oil companies. The European markets were solidly higher and the U.S. bourses were off on holiday and the Asian markets figure to open in the green.

The SCI finished barely lower as losses from the financials and oil companies were offset by gains from the properties and a mixed performance from the energy stocks.

For the day, the index dipped 1.36 points or 0.05 percent to finish at 3,315.43 after trading between 3,292.93 and 3,333.90. The Shenzhen Composite Index climbed 27.12 points or 1.27 percent to end at 2,158.34.

Among the actives, Industrial and Commercial Bank of China skidded 1.05 percent, while Bank of China dipped 0.31 percent, China Construction Bank fell 0.33 percent, China Merchants Bank lost 0.38 percent, Bank of Communications shed 0.40 percent, China Life Insurance strengthened 1.69 percent, Jiangxi Copper declined 1.03 percent, Aluminum Corp of China (Chalco) tanked 2.61 percent, Yankuang Energy plummeted 8.59 percent, PetroChina plummeted 6.52 percent, China Petroleum and Chemical (Sinopec) retreated 1.21 percent, Huaneng Power skyrocketed 10.08 percent, China Shenhua Energy plunged 4.67 percent, Gemdale surged 5.88 percent, Poly Developments soared 3.08 percent, China Vanke spiked 2.37 percent, Beijing Capital rallied 2.95 percent and China Minsheng Bank was unchanged.

Wall Street and many of the commodity markets were off on Monday for the Juneteenth holiday, but the European markets finished with solid gains.

Germany's DAX jumped 139.34 points or 1.06 percent to finish at 13,265..60, London's FTSE spiked 105.56 points or 1.50 percent to close at 7,121.81 and the CAC 40 in France gained 37.44 points or 0.64 percent to end at 5,920.09.

Bargain hunting was a big part of that following the weakness from last week that were fueled by worries about a recession and bets of bigger interest-rate hikes from major central banks.

The rally was also fueled by European Central bank President Christine Lagarde, who reaffirmed on Monday that the ECB will hike interest rates by 25 basis points twice this summer to fight inflation. Investors had worried that sharper rate hikes might be on the docket, sparking recession concerns.

Investors also await a congressional appearance by U.S. Federal Reserve Chair Jay Powell this week that could highlight the U.S. central bank's resolve to guide inflation back to the Fed's 2 percent target.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT