China Stock Market May Open To The Upside

(RTTNews) - The China stock market rebounded on Wednesday, one day after snapping the two-day winning streak in which it had gained almost 35 points or 0.9 percent. The Shanghai Composite Index now sits just beneath the 3,950-point plateau and it's expected to bounce higher again on Thursday.

The global forecast continues to be upbeat on optimism over an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The SCI finished sharply higher on Wednesday following gains from the properties and resource stocks, while the financial sector was mixed.

For the day, the index improved 56.69 points or 1.46 percent to finish at 3,948.55 after trading between 3,929.92 and 3,955.94. The Shenzhen Composite Index gained 41.87 points or 1.65 percent to end at 2,577.23.

Among the actives, Industrial and Commercial Bank of China lost 0.79 percent, while Agricultural Bank of China eased 0.15 percent, China Merchants Bank climbed 1.27 percent, Bank of Communications was up 0.14 percent, China Life Insurance jumped 1.87 percent, Jiangxi Copper rallied 3.60 percent, Aluminum Corp of China (Chalco) expanded 1.40 percent, Yankuang Energy tumbled 1.76 percent, PetroChina dropped 0.98 percent, China Petroleum and Chemical (Sinopec) perked 0.17 percent, Huaneng Power added 0.57 percent, China Shenhua Energy fell 0.28 percent, Gemdale improved 0.73 percent, Poly Developments elevated 1.20 percent, China Vanke strengthened 1.25 percent and Bank of China was unchanged.

The lead from Wall Street is firm as the major averages opened higher on Wednesday and remained in the green throughout the trading day, although ending off session highs.

The Dow jumped 224.23 points or 0.48 percent to finish at 46,565.74, while the NASDAQ rallied 250.32 points or 1.16 percent to end at 21,840.95 and the S&P 500 gained 46.80 points or 0.72 percent to close at 6,575.32.

The extended the rally on Wall Street came amid optimism about an end to the U.S. war with Iran following the latest comments by President Donald Trump, who said he expects U.S. military forces to leave Iran in "two or three weeks."

The price of crude oil has extended Tuesday's pullback following Trump's comments, with U.S. crude oil futures falling below $100 a barrel.

Crude oil has plummeted on Wednesday after Trump's comments, even if the Strait of Hormuz remains blocked and U.S. goals are not completely met. West Texas Intermediate crude for May delivery was down $1.68 or 1.66 percent at $99.70 per barrel.