China Stock Market May Find Traction On Friday

(RTTNews) - The China stock market has moved lower in two straight sessions, slipping more than 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just above the 3,025-point plateau although it may stop the bleeding on Friday.

The global forecast for the Asian markets is upbeat on growing optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The SCI finished modestly lower on Thursday following losses from the properties and gains from the financials and resource stocks.

For the day, the index lost 12.63 points or 0.41 percent to finish at 3,027.40 after trading between 3,023.12 and 3,063.69. The Shenzhen Composite Index dropped 20.61 points or 1.20 percent to end at 1,701.44.

Among the actives, Industrial and Commercial Bank of China added 0.56 percent, while Bank of China gained 0.44 percent, China Construction Bank increased 0.57 percent, China Merchants Bank rose 0.41 percent, Bank of Communications collected 0.79 percent, China Life Insurance sank 0.75 percent, Jiangxi Copper surged 3.68 percent, Aluminum Corp of China (Chalco) soared 3.35 percent, Yankuang Energy climbed 1.03 percent, PetroChina advanced 1.00 percent, China Petroleum and Chemical (Sinopec) improved 0.78 percent, Huaneng Power jumped 1.98 percent, China Shenhua Energy rallied 1.70 percent, Gemdale tumbled 1.51 percent, Poly Developments dropped 0.76 percent and China Vanke stumbled 1.29 percent.

The lead from Wall Street is positive as the major averages opened higher on Thursday and remained solidly in the green throughout the session, with the S&P and NASDAQ hitting fresh closing highs.

The Dow climbed130.30 points or 0.34 percent to finish at 38,791.35, while the NASDAQ surged 2.41.83 points or 1.51 percent to end at 16,273.38 and the S&P 500 rallied 52.60 points or 1.03 percent to close at 5,157.36.

The extended rebound on Wall Street came on optimism about the outlook for interest rates after Federal Reserve Chair Jerome Powell told Congress on Thursday that rate cuts "can and will" begin this year.

Adding to the optimism about interest rates, the European Central Bank lowered its annual inflation forecast while announcing its widely expected decision to leave rates unchanged.

Potentially adding to the buying interest on Wall Street, treasury yields saw further downside on the day, with the ten-year yield falling to its lowest closing level in a month.

Oil prices drifted lower on Thursday amid some concerns about the outlook for demand, although the downside was limited by a weaker greenback. West Texas Intermediate Crude oil futures for April fell $0.20 or 0.3 percent at $78.93 a barrel.