China Stock Market Tipped To Open In The Green

(RTTNews) - The China stock market on Tuesday ended the five-day winning streak in which it had jumped more than 80 points or 2.8 percent. The Shanghai Composite Index now rests just beneath the 3,020-point plateau although it's expected to rebound again on Wednesday.

The global forecast for the Asian markets is cautiously optimistic ahead of the Federal Reserve's monetary policy announcement later today. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The SCI finished slightly lower on Tuesday following mixed performances from the financial shares, property stocks and resource companies.

For the day, the index dipped 2.78 points or 0.09 percent to finish at 3,018.77 after trading between 3,006.61 and 3,023.00. The Shenzhen Composite Index fell 10.03 points or 0.53 percent to end at 1,874.51.

Among the actives, Industrial and Commercial Bank of China advanced 0.85 percent, while Bank of China rallied 1.56 percent, China Construction Bank collected 0.64 percent, China Merchants Bank shed 0.45 percent, Bank of Communications improved 0.72 percent, China Life Insurance climbed 1.14 percent, Jiangxi Copper eased 0.11 percent, Aluminum Corp of China (Chalco) increased 0.98 percent, Yankuang Energy jumped 1.56 percent, PetroChina dipped 0.14 percent, China Petroleum and Chemical (Sinopec) strengthened 1.30 percent, Huaneng Power fell 0.39 percent, China Shenhua Energy spiked 2.05 percent, Gemdale plummeted 5.31 percent, Poly Developments gathered 1.10 percent and China Vanke plunged 2.33 percent.

The lead from Wall Street is positive as the major averages shook off early weakness on Tuesday, moving into positive territory by midday and ending firmly in the green.

The Dow advanced 123.91 points or 0.38 percent to finish at 33,052.87, while the NASDAQ added 61.76 points or 0.48 percent to close at 12,851.24 and the S&P 500 gained 26.98 points or 0.65 percent to end at 4,193.80.

The early weakness on Wall Street reflected a negative reaction to a Labor Department report showing that employment costs jumped slightly more than expected in the third quarter.

Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today.

The subsequent rebound by stocks came as traders resumed Monday's bargain hunting, as stocks remain at relatively reduced levels despite the rally seen in the previous session.

Oil prices dropped on Tuesday, and posted a monthly loss as well, as concerns about the outlook for energy demand and a stronger dollar weighed on the commodity. West Texas Intermediate crude oil futures for December fell $1.29 or 1.6 percent at 81.02 a barrel, the lowest settlement in two months. WTI crude futures shed nearly 11 percent in October.