Additional Support Anticipated For China Stock Market

(RTTNews) - The China stock market on Monday snapped the two-day slide in which it had fallen more than 30 points or 0.9 percent. The Shanghai Composite Index now sits just beneath the 3,445-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is mixed to higher on trade deal optimism. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The SCI finished modestly higher on Monday as gains from the property and power companies were capped by weakness from the oil companies and other resource stocks.

For the day, the index added 20.20 points or 0.59 percent to finish at 3,444.43 after trading between 3,420.11 and 3,447.46. The Shenzhen Composite Index climbed 22.30 points or 1.09 percent to end at 2,074.85.

Among the actives, Industrial and Commercial Bank of China climbed 1.20 percent, while Bank of China collected 0.36 percent, China Merchants Bank shed 0.58 percent, Bank of Communications lost 0.50 percent, China Life Insurance perked 0.07 percent, Jiangxi Copper sank 0.59 percent, Aluminum Corp of China (Chalco) skidded 1.12 percent, PetroChina dropped 0.81 percent, China Petroleum and Chemical (Sinopec) fell 0.35 percent, Huaneng Power rallied 1.42 percent, China Shenhua Energy jumped 1.53 percent, Gemdale strengthened 1.33 percent, Poly Developments added 0.62 percent, China Vanke gained 0.47 percent and Agricultural Bank of China and Yankuang Energy were unchanged.

The lead from Wall Street is positive as the major averages opened higher and remained in the green throughout the session, ending near daily highs.

The Dow jumped 275.50 points or 0.63 percent to finish at 44,094.77, while the NASDAQ climbed 96.28 points or 0.47 percent to close at 20,369.73 and the S&P 500 gained 31,88 points or 0.52 percent to end at 6,204.95.

The continued strength on Wall Street came amid ongoing optimism about trade deals ahead of the impending deadline for U.S. reciprocal tariffs early next month.

Positive sentiment was also generated in reaction to news Canada has rescinded its digital services tax on American tech firms, which were initially set to begin being collected on Monday.

Crude oil prices closed lower on Monday amid a backdrop of easing Middle Eastern tensions and concerns of excess supply as OPEC plans to scale up production. West Texas Intermediate crude for August delivery closed down by $0.41 to settle at $65.11 per barrel.