China Shares May Bounce Higher Again On Wednesday

(RTTNews) - The China stock market on Tuesday snapped the two-day winning streak in which it had climbed more than 75 points or 1.8 percent. The Shanghai Composite Index now sit just beneath the 4,150-point plateau although they're expected to find renewed support on Wednesday.

The global forecast for the Asian markets is mixed to higher, thanks to support from technology stocks and easing crude oil prices. The European and U.S. markets were mixed and the Asian bourses are expected to follow suit.

The SCI finished slightly lower on Tuesday following losses from the properties, gains from the resource stocks and a mixed picture from the financials and energy companies.

For the day, the index dipped 7.20 points or 0.17 percent to finish at 4,145.37 after trading between 4,104.46 and 4,150.29. The Shenzhen Composite Index lost 17.23 points or 0.60 percent to end at 2,872.32.

Among the actives, Industrial and Commercial Bank of China perked 0.14 percent, while Bank of China collected 0.17 percent, Agricultural Bank of China fell 0.31 percent, China Merchants Bank rose 0.16 percent, Bank of Communications slipped 0.15 percent, China Life Insurance eased 0.09 percent, Jiangxi Copper rallied 3.35 percent, Aluminum Corp of China (Chalco) skyrocketed 10.01 percent, Yankuang Energy shed 0.58 percent, PetroChina jumped 2.14 percent, China Petroleum and Chemical (Sinopec) slumped 1.02 percent, Huaneng Power gained 0.67 percent, China Shenhua Energy was up 0.04 percent, Gemdale sank 0.74 percent, Poly Developments lost 0.34 percent and China Vanke tanked 2.87 percent.

The lead from Wall Street lacks clarity as the major averages opened higher, although the Dow quickly fell into the red and stayed that was for the balance of the session.

The Dow slumped 118.02 points or 0.23 percent to finish at 50,461.68, while the NASDAQ jumped 312.21 points or 1.19 percent to close at 26,656.18 and the S&P 500 gained 45.65 points or 0.61 percent to end at 7,519.12.

The jump by the tech-heavy NASDAQ came amid a sharp increase by shares of Micron Technology (MU) after UBS dramatically increased its price target on the company's stock.

Semiconductor stocks showed a substantial move to the upside, driving the Philadelphia Semiconductor Index up by 5.5 percent to a record closing high. Considerable strength was also visible among airline stocks,

In U.S. economic news, a report released by the Conference Board showed a modest deterioration in consumer confidence in the month of May.

Crude oil prices tumbled on Tuesday on optimism that a U.S.-Iran peace deal could soon lead to the reopening of the Strait of Hormuz. West Texas Intermediate crude for July delivery was down $2.72 or 2.82 percent at $93.88 per barrel.

Closer to home, China will see April data for industrial profits later this morning; in March, profits surged 15.5 percent on year.