China Stock Market Tipped To Extend Winning Streak

The China stock market has climbed higher in four straight trading days, gathering almost 75 points or 2.1 percent along the way. The Shanghai Composite Index now rests just above the 3,590-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is flat to higher on easing treasury yield concerns and a rebound among technology stocks. The European markets were mixed and the U.S. bourses were mostly higher and the Asian markets figure to follow that lead.

The SCI finished slightly higher on Wednesday following gains from the property stocks and resource companies, while the financials were mixed.

For the day, the index picked up 3.61 points or 0.10 percent to finish at 3,592.70 after trading between 3,575.29 and 3,602.74. The Shenzhen Composite Index rose 0.11 points to end at 2,520.48.

Among the actives, Industrial and Commercial Bank of China rose 0.22 percent, while Bank of China collected 0.33 percent, China Merchants Bank eased 0.02 percent, Bank of Communications slid 0.22 percent, China Life Insurance added 0.31 percent, Jiangxi Copper gained 0.51 percent, Aluminum Corp of China (Chalco) climbed 1.50 percent, Yanzhou Coal surged 6.95 percent, PetroChina spiked 1.85 percent, China Petroleum and Chemical (Sinopec) advanced 0.97 percent, Huaneng Power jumped 1.88 percent, China Shenhua Energy rallied 2.96 percent, Gemdale dipped 0.10 percent, Poly Developments improved 1.04 percent, China Vanke perked 0.31 percent, Beijing Capital Development increased 1.05 percent, China Fortune Land improved 0.87 percent and China Construction Bank was unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened sharply lower on Wednesday but clawed back as the day progressed, with the NASDAQ and S&P 500 managing to finish higher while the Dow ended barely in the red.

The Dow shed 9.42 points or 0.03 percent to finish at 35,804.38, while the NASDAQ jumped 70.09 points or 0.44 percent to close at 15,845.23 and the S&P 500 rose 10.76 points or 0.23 percent to end at 4,701.46.

The early weakness on Wall Street came amid a continued increase in U.S. treasury yields, with the yield on the benchmark ten-year note reaching its highest intraday level in six months. Yields showed a notable downturn over the course of the trading day, however, contributing to the rebound on Wall Street.

A Labor Department report showing first-time claims for U.S. unemployment benefits slid to their lowest level in over fifty years last week helped push yields higher.

Also, the Commerce Department noted an unexpected drop in durable goods orders but an increase in new home sales in October, while personal income and spending both increased by more than expected during the month.

Crude oil futures settled slightly lower on Wednesday after data showed a modest increase in U.S. crude stockpiles last week. West Texas Intermediate crude oil futures ended down by $0.11 or 0.14 percent at $78.39 a barrel.

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