China Bourse Tipped To End Losing Streak

(RTTNews) - The China stock market has tracked lower in back-to-back sessions, surrendering almost 40 points or 1.3 percent along the way. The Shanghai Composite Index now sits just shy of the 3,200-point plateau, although it's predicted to stop the bleeding on Wednesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly lower on Tuesday following losses from the financial shares and energy companies, while the resource and property sectors were mixed.

For the day, the index sank 11.81 points or 0.37 percent to finish at 3,197.82 after trading between 3,190.00 and 3,210.25. The Shenzhen Composite Index slid 5.33 points or 0.26 percent to end at 2,042.37.

Among the actives, Industrial and Commercial Bank of China shed 0.66 percent, while Bank of China retreated 1.59 percent, China Construction Bank lost 0.51 percent, China Merchants Bank sank 0.60 percent, Bank of Communications fell 0.36 percent, China Life Insurance slid 0.37 percent, Jiangxi Copper perked 0.15 percent, Aluminum Corp of China (Chalco) climbed 1.05 percent, Yankuang Energy declined 0.43 percent, PetroChina dropped 0.86 percent, China Petroleum and Chemical (Sinopec) skidded 1.07 percent, Huaneng Power slumped 0.53 percent, China Shenhua Energy plunged 3.57 percent, Gemdale added 0.44 percent, Poly Developments advanced 0.96 percent, China Vanke eased 0.07 percent and China Fortune Land was down 0.46 percent.

The lead from Wall Street is solid as the major averages opened mixed on Tuesday but took off shortly thereafter, ending near session highs.

The Dow spiked 366.58 points or 1.06 percent to finish at 34,951.93, while the NASDAQ advanced 108.69 points or 0.76 percent to end at 14,353.64 and the S&P 500 gained 32.19 points or 0.71 percent to close at 4,554.98.

The rally on Wall Street followed the release of earnings news from financial giants like Bank of America (BAC), Morgan Stanley (MS), Bank of New York Mellon (BK) and PNC Financial Services (PNC), which all beat the street.

Traders also reacted positively to the release of separate reports showing a smaller than expected increase in retail sales and an unexpected decrease in industrial production.

While the reports led to some concerns about the strength of the economy, the data has added to recent optimism about the Federal Reserve nearing the end of its interest rate hiking cycle.

Crude oil prices moved higher on Tuesday for the first time in three days as the dollar slipped after soft data. West Texas Intermediate Crude oil futures for August ended higher by $1.60 or 2.2 percent at $75.75 a barrel.