China Stock Market May Extend Winning Streak

(RTTNews) - The China stock market has climbed higher in three straight sessions, collecting more than 35 points or 1.2 percent along the way. The Shanghai Composite Index now rests just above the 3,070-point plateau and it may tick higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic thanks to the improving outlook for interest rates. The European and U.S. markets were slightly higher and the Asian bourses are expected to open in similar fashion.

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

For the day, the index added 16.76 points or 0.55 percent to finish at 3,072.83 after trading between 3,064.35 and 3,080.13. The Shenzhen Composite Index gained 13.02 points or 0.68 percent to end at 1,934.75.

Among the actives, Bank of China fell 0.25 percent, while China Construction Bank dipped 0.16 percent, China Merchants Bank strengthened 1.46 percent, Bank of Communications collected 0.35 percent, China Life Insurance soared 3.20 percent, Jiangxi Copper jumped 1.86 percent, Aluminum Corp of China (Chalco) climbed 1.20 percent, Yankuang Energy improved 0.77 percent, PetroChina advanced 1.13 percent, China Petroleum and Chemical (Sinopec) rallied 1.65 percent, Huaneng Power eased 0.13 percent, China Shenhua Energy was up 0.29 percent, Gemdale slid 0.18 percent, Poly Developments sank 0.72 percent, China Vanke gained 0.93 percent and Industrial and Commercial Bank of China and Haitong Securities were unchanged.

The lead from Wall Street suggests mild upside as the major averages opened higher on Wednesday and stayed largely in the green although finished with limited gains.

The Dow jumped 163.51 points or 0.47 percent to finish at 34,991.21, while the NASDAQ rose 9.45 points or 0.07 percent to close at 14,103.84 and the S&P 500 perked 7.18 points or 0.16 percent to end at 4,502.88.

The continued strength on Wall Street came as the latest inflation data added to optimism about the outlook for interest rates - especially after the Labor Department reported an unexpected decrease in U.S. producer prices in October.

Following Tuesday's tamer than expected consumer price inflation data, the latest report reinforced expectations that the Federal Reserve is done raising interest rates.

In economic news, the Commerce Department said retail sales in the U.S. edged slightly lower in October.

Crude oil prices tumbled on Wednesday after data showed a sharp increase in U.S. crude stockpiles and a big jump in crude production. West Texas Intermediate Crude oil futures for December lost $1.60 or 2 percent at $76.66 a barrel, falling for the first time in five sessions.

Closer to home, China will see October figures for house prices later today; in September, prices dipped 0.1 percent on year.