China Stock Market May Be Stuck In Neutral On Wednesday
(RTTNews) – The China stock market on Tuesday ended the two-day losing streak in which it had slumped more than 25 points or 0.7 percent. The Shanghai Composite Index now rests just above the 3,630-point plateau although it may tick lower again on Wednesday.
The global forecast for the Asian markets is mixed, with support expected from oil companies and weakness likely from tech shares. The European and U.S. markets were mixed and the Asian bourses figure to follow suit.
The SCI finished modestly higher on Tuesday as gains from the financials and properties were offset by weakness from the oil companies and energy producers.
For the day, the index collected 14.14 points or 0.39 percent to finish at 3,630.11 after trading between 3,607.36 and 3,631.08. The Shenzhen Composite Index advanced 20.61 points or 0.83 percent to end at 2,514.82.
Among the actives, Industrial and Commercial Bank of China collected 0.43 percent, while Bank of China and China Life Insurance both added 0.33 percent, China Construction Bank gained 0.68 percent, China Merchants Bank improved 0.61 percent, Bank of Communications rose 0.22 percent, Jiangxi Copper increased 0.44 percent, Aluminum Corp of China (Chalco) advanced 0.81 percent, Yankuang Energy plummeted 5.71 percent, PetroChina fell 0.40 percent, China Petroleum and Chemical (Sinopec) dipped 0.24 percent, Huaneng Power tanked 2.56 percent, China Shenhua Energy plunged 2.28 percent, Gemdale jumped 1.97 percent, Poly Developments lost 0.59 percent, China Vanke was up 0.31 percent, China Fortune Land perked 0.55 percent and Beijing Capital Development rallied 1.08 percent.
The lead from Wall Street is mixed as the Dow opened higher on Thursday and stayed that way, the S&P 500 opened higher but gradually fell into the red and the NASDAQ simply spent most of the day in negative territory.
The Dow gained 95.83 points or 0.26 percent to finish at 36,398.21, while the NASDAQ sank 89.54 points or 0.56 percent to close at 15,781.72 and the S&P 500 eased 4.84 points or 0.10 percent to end at 4,786.35.
The lackluster performance came as traders were reluctant to continue making significant moves following the recent strength in the markets. But they largely refrained from cashing in on recent gains amid easing concerns about the impact of the Omicron variant of the coronavirus.
Helping offset worries about the pandemic, the Centers for Disease Control and Prevention has shortened the recommended isolation time to for asymptomatic people with Covid-19 to 5 days from 10 days.
Crude oil futures rose Tuesday, extending gains to a fifth straight session on hopes the Omicron variant of the coronavirus is unlikely to impact global economic recovery. West Texas Intermediate Crude oil futures for February added $0.41 or 0.5 percent at $75.98 a barrel.