Additional Support Predicted For China Stock Market

(RTTNews) - The China stock market has finished higher in back-to-back sessions, gathering more than 60 points or 1.6 percent along the way. The Shanghai Composite Index now sits just above the 3,825-point plateau and it has another firm lead for Tuesday's trade. The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European and U.S. markets were modestly higher and the Asian bourses are expected to follow that lead. The SCI finished modestly higher on Monday as gains from the property and energy stocks were offset by weakness from the financial and resource sectors. For the day, the index rose 14.33 points or 0.38 percent to finish at 3,826.84 after trading between 3,803.60 and 3,833.14. The Shenzhen Composite Index gained 21.57 points or 0.90 percent to end at 2,427.39. Among the actives, Industrial and Commercial Bank of China shed 0.54 percent, while Bank of China dropped 0.91 percent, Agricultural Bank of China lost 0.55 percent, China Merchants Bank sank 0.77 percent, Bank of Communications retreated 1.24 percent, China Life Insurance slumped 0.87 percent, Jiangxi Copper tanked 2.93 percent, Aluminum Corp of China (Chalco) skidded 1.04 percent, Yankuang Energy jumped 1.62 percent, PetroChina eased 0.11 percent, China Petroleum and Chemical (Sinopec) dipped 0.18 percent, Huaneng Power rallied 2.52 percent, China Shenhua Energy slipped 0.29 percent, Gemdale soared 4.36 percent, Poly Developments rose 0.26 percent and China Vanke spiked 2.58 percent.

The lead from Wall Street is cautiously optimistic as the major averages opened mixed on Monday but all finished with modest gains.

The Dow climbed 114.09 points or 0.25 percent to finish at 45,514.95, while the NASDAQ advanced98.31 points or 0.45 percent to close at 21,798.70 and the S&P 500 rose 13.65 points or 0.21 percent to end at 6,495.15.

The strength on Wall Street reflected optimism about the outlook for interest rates following last Friday's weaker-than-expected U.S. employment data.

Following the release of a closely watched report showing employment increased by much less than expected in the month of August, CME Group's FedWatch Tool is currently indicating a 90.2 percent chance the Fed will lower rates by a quarter point later this month.

Overall trading activity was subdued, however, as traders looked ahead to the release of consumer and producer price inflation later this week, which could also impact the outlook for rates.

Crude oil moved higher Monday on the threat of sanctions hanging over Russia on its oil exports, although the upside was limited by OPEC's decision Sunday to increase output. West Texas Intermediate crude for October delivery was up $0.53 or 0.86 percent at $62.40 per barrel.