China Bourse: Resistance Expected At 3,300 Points

(RTTNews) - The China stock market has tracked higher in two straight sessions, collecting more than 15 points or 0.4 percent along the way. The Shanghai Composite Index remains just above the 3,290-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets suggests consolidation over the outlook for interest rates and likely selling in the retail sector. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The SCI finished modestly higher on Wednesday following gains from the properties, financials and resource stocks.

For the day, the index gained 14.64 points or 0.45 percent to finish at 3,292.53 after trading between 3,263.35 and 3,296.00. The Shenzhen Composite Index advanced 15.41 points or 0.69 percent to end at 2,242.45.

Among the actives, Industrial and Commercial Bank of China perked 0.23 percent, while Bank of China rose 0.33 percent, China Construction Bank collected 0.55 percent, China Merchants Bank advanced 0.97 percent, Bank of Communications added 0.44 percent, China Life Insurance soared 3.44 percent, Jiangxi Copper shed 0.41 percent, Aluminum Corp of China (Chalco) jumped 1.75 percent, Yankuang Energy lost 0.63 percent, PetroChina gathered 0.39 percent, China Petroleum and Chemical (Sinopec) improved 0.73 percent, Huaneng Power spiked 3.05 percent, China Shenhua Energy fell 0.45 percent, Gemdale skyrocketed 5.01 percent, Poly Developments surged 4.01 percent, China Vanke rallied 2.12 percent and China Fortune Land was unchanged.

The lead from Wall Street is negative as the major averages opened lower on Wednesday, pared the losses as the day progressed but still ended firmly in the red.

The Dow dropped 171.69 points or 0.50 percent to finish at 33,980.32, while the NASDAQ tumbled 164.43 points or 1.25 percent to close at 12,938.12 and the S&P 500 slumped 31.16 points or 0.72 percent to end at 4,274.04.

The failed recovery attempt came after the Federal Reserve released the minutes of its latest monetary policy meeting, which some traders seemed to interpret as pointing to a slowdown in the pace of interest rate hikes. But the Fed minutes reaffirmed the central bank's plans to continue raising interest rates in an effort to return inflation to its 2 percent objective.

Quarterly results from Target (TGT) also weighed on the markets after reporting earnings fell well short of estimates as it cut prices in an effort to reduce excess inventory.

Traders were also reacting to a Commerce Department report showing U.S. retail sales came in flat in July amid pullbacks in gas station and auto sales.

Crude oil prices climbed higher Wednesday, lifted by data showing declines in crude and gasoline inventories in the U.S. last week. West Texas Intermediate Crude oil futures for September ended higher by $1.58 or 1.8 percent at $88.11 a barrel.