China Stock Market May Find Traction On Wednesday

(RTTNews) - The China stock market has moved lower in back-to-back sessions, surrendering almost 65 points or 2.1 percent along the way. The Shanghai Composite Index now sits just above the 2,975-point plateau although it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism over falling treasury yields and an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The SCI finished modestly lower on Tuesday following losses from the properties and mixed performances from the financial and resource stocks.

For the day, the index dipped 1.27 points or 0.33 percent to finish at 2,976.28 after trading between 2,944.26 and 3,001.72. The Shenzhen Composite Index slipped 8.83 points or 0.46 percent to end at 1,923.51.

Among the actives, Industrial and Commercial Bank of China shed 0.46 percent, while Bank of China fell 0.33 percent, China Construction Bank eased 0.18 percent, China Merchants Bank collected 0.61 percent, China Life Insurance advanced 0.92 percent, Jiangxi Copper slid 0.32 percent, Aluminum Corp of China (Chalco) rose 0.25 percent, Yankuang Energy was up 0.04 percent, PetroChina dropped 0.97 percent, China Petroleum and Chemical (Sinopec) skidded 1.15 percent, Huaneng Power rallied 2.00 percent, China Shenhua Energy dipped 0.07 percent, Gemdale plunged 4.02 percent, Poly Developments sank 0.55 percent, China Vanke was down 0.06 percent and Bank of Communications was unchanged,

The lead from Wall Street is solid for the third straight session as the major averages opened higher and picked up steam as the day progressed, ending near session highs.

For the day, the index spiked 337.12 points or 1.07 percent to finish at 31,836.74, while the NASDAQ surged 246.50 points or 2.25 percent to close at 11,199.12 and the S&P 500 jumped 61.77 points or 1.63 percent to end at 3,859.11.

The extended rally on Wall Street came amid a sharp pullback by treasury yields, with the yield on the benchmark 10-year note showing a steep drop after ending the previous session at a 14-year closing high.

The pullback by treasury yields came as traders continue to express optimism the Federal Reserve will signal a slower pace of interest rate hikes following its meeting next week.

The markets also benefited from a positive reaction to the latest earnings news, with General Motors (GM) and Coca-Cola (KO) posting strong gains after reporting better than expected third quarter earnings.

Crude oil futures settled higher Tuesday, buoyed by a weaker dollar and concerns about supply after Saudi Arabia's energy minister commented that energy stocks were being used as a mechanism to manipulate markets. West Texas Intermediate Crude futures for December ended higher by $0.74 or 0.9 percent at $85.32 a barrel.