China Shares Tipped To Bounce Higher At Thursday's Open

(RTTNews) - The China stock market turned lower again on Wednesday, one session after snapping the four-day losing streak in which it had dropped more than 70 points or 2.4 percent. The Shanghai Composite Index now sits just beneath the 3,050-point plateau although it's expected to rebound on Thursday.

The global forecast for the Asian markets is upbeat following news of bond market intervention from the Bank of England. The European and U.S. markets were up and the oversold Asian bourses figure to follow suit.

The SCI finished sharply lower on Wednesday following losses from the properties, resource stocks and oil companies, while the financials offered mild support.

For the day, the index retreated 48.80 points or 1.58 percent to finish at 3,045.07 after trading between 3,044.86 and 3,089.10. The Shenzhen Composite Index tumbled 51.14 points or 2.57 percent to end at 1,938.26.

Among the actives, Industrial and Commercial Bank of China rose 0.23 percent, while Bank of China collected 0.66 percent, China Construction Bank advanced 0.72 percent, China Merchants Bank shed 0.68 percent, Bank of Communications added 0.65 percent, China Life Insurance strengthened 1.22 percent, Jiangxi Copper tanked 2.78 percent, Aluminum Corp of China (Chalco) plunged 3.60 percent, Yankuang Energy eased 0.02 percent, PetroChina declined 0.59 percent, China Petroleum and Chemical (Sinopec) sank 0.70 percent, Huaneng Power lost 0.51 percent, China Shenhua Energy gained 0.79 percent, Gemdale tumbled 2.00 percent, Poly Developments dropped 0.85 percent, China Vanke slumped 0.80 percent and China Fortune Land retreated 3.07 percent.

The lead from Wall Street is broadly positive as the major averages opened mixed on Wednesday but accelerated shortly thereafter to finish solidly in the green.

The Dow surged 548.75 points or 1.88 percent to finish at 29,683.74, while the NASDAQ soared 222.13 points or 2.05 percent to end at 11,051.64 and the S&P 500 jumped 71.75 points or 1.97 percent to close at 3,719.04.

The rally on Wall Street reflected a positive reaction to the Bank of England's plans to begin temporarily purchasing long-dated U.K. government bonds to address dysfunction in the gilt market. In addition, the BoE postponed the selling of bonds held under the quantitative easing program to October 31.

Long-term U.K. bond yields have pulled back following the news, while U.S. treasury yields also moved sharply lower after surging in recent sessions. The yield on the benchmark 10-year note showed a steep drop after briefly topping 4.0 percent for the first time in over 12 years.

Stocks also benefited from a significant pullback by the U.S. dollar, with the U.S. dollar index tumbling by 1.2 percent. The greenback had recently reached new 20-year highs.

Crude oil prices rose sharply Wednesday after data showed a dip in U.S. crude inventories last week, and the dollar's sharp drop also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures for November ended higher by $3.65 or 4.7 percent at $82.15 a barrel.