China Stock Market Tipped To Find Traction On Thursday

(RTTNews) - The China stock market has finished lower in two straight sessions, sinking almost 100 points or 3 percent along the way. The Shanghai Composite Index now sits just beneath the 3,165-point plateau although it figures to stop the bleeding on Thursday.

The global forecast for the Asian markets is upbeat on easing fears of a worldwide economic slowdown. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in similar fashion.

The SCI finished modestly lower on Wednesday following losses from the financial shares, property stocks and resource companies.

For the day, the index shed 22.59 points or 0.71 percent to finish at 3,163.67 after trading between 3,159.46 and 3,217.55. The Shenzhen Composite Index sank 20.98 points or 0.98 percent to end at 2,117.19.

Among the actives, Industrial and Commercial Bank of China shed 0.69 percent, while Bank of China fell 0.33 percent, China Construction Bank skidded 1.09 percent, China Merchants Bank tanked 2.51 percent, Bank of Communications lost 0.44 percent, China Life Insurance tumbled 1.73 percent, Jiangxi Copper dropped 0.85 percent, Aluminum Corp of China (Chalco) sank 0.90 percent, Yankuang Energy eased 0.19 percent, PetroChina declined 0.78 percent, China Petroleum and Chemical (Sinopec) slumped 0.49 percent, Huaneng Power surrendered 2.62 percent, China Shenhua Energy weakened 1.25 percent, Gemdale plummeted 4.08 percent, Poly Developments plunged 4.05 percent, China Vanke stumbled 2.78 percent and China Fortune Land was down 1.42 percent.

The lead from Wall Street is broadly positive as the major averages opened firmly in the green and accelerated as the session progressed.

The Dow surged 416.33 points or 1.29 percent to finish at 32,812.50, while the NASDAQ spiked 319.40 points or 2.59 percent to end at 12,668.16 and the S&P 500 sank 63.98 points or 1.56 percent to close at 4,155.17.

The rebound on Wall Street partly reflected a positive reaction to some upbeat U.S. economic data, which helped ease concerns about a recession.

The Institute for Supply Management noted an unexpected acceleration in the pace of growth in U.S. services sector activity in July. Also, the Commerce Department saw a sharp increase in new orders for U.S. manufactured goods in June.

Crude oil prices fell sharply Wednesday after data showed an unexpected surge in U.S. crude inventories last week. The dollar's strength after hawkish comments from a few Fed officials also weighed on oil prices.

Also, OPEC+ agreed to a tiny increase in output next month amid fears that a global recession will crimp demand. West Texas Intermediate Crude futures for September sank $3.76 or 4 percent at $90.66 a barrel.