China Stock Market May Extend Tuesday's Gains

(RTTNews) - The China stock market has alternated between positive and negative finishes through the last eight trading days since the end of the four-day winning streak in which it had climbed more than 110 points or 2.7 percent. The Shanghai Composite Index now sits just above the 3,820-point plateau and it may see additional support on Wednesday.

The global forecast for the Asian markets is upbeat on falling crude oil prices and optimism for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly higher on Tuesday as gains from the technology and healthcare stocks were capped by weakness among the financial shares.

For the day, the index added 12.62 points or 0.33 percent to finish at 3,822.28 after trading between 3,799.52 and 3,831.94.

The lead from Wall Street is strong as the major averages opened solidly higher and continued to accelerate throughout the day, ending at fresh record closing highs.

The Dow rallied 907.47 points or 1.71 percent to finish at 54,085.88, while the NASDAQ soared 671.10 points or 2.59 percent to end at 26,584.99 and the S&P 500 jumped 136.02 points or 1.79 percent to close at 7,736.52.

The continued strength on Wall Street comes amid an extended nosedive by the price of crude oil, with U.S. crude oil futures plummeting after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days.

Later, Qatar confirmed that mediatory efforts to secure U.S.-Iran deal are progressing well. West Texas Intermediate crude for September delivery was down $4.66 or 5.80 percent at $75.68 per barrel.

Tech stocks have led the rally amid a positive reaction to earnings news from enterprise software giant Palantir (PLTR); shares of the company surged more than 25 percent it reported better than expected second quarter results and raised its full-year guidance.

In economic news, the Commerce Department said the U.S. trade deficit narrowed roughly in line with estimates in June. The trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.