China Stock Market Tipped To Open In The Green

(RTTNews) - The China stock market on Tuesday ended the two-day slide in which it had fallen more than 30 points or 1 percent. The Shanghai Composite Index now sits just beneath the 3,040-point plateau and it may find continued strength on Wednesday.

The global forecast for the Asian markets is cautiously optimistic over the outlook for interest rates. The European markets were mixed and little changed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The SCI finished slightly higher on Tuesday following gains from the resource stocks, weakness from the property sector and a mixed picture from the financial shares.

For the day, the index rose 6.85 points or 0.23 percent to finish at 3,038.55 after trading between 3,020.23 and 3,039.69. The Shenzhen Composite Index advanced 11.41 points or 0.60 percent to end at 1,904.81.

Among the actives, Industrial and Commercial Bank of China collected 0.21 percent, while Bank of China fell 0.25 percent, China Construction Bank perked 0.16 percent, China Merchants Bank dropped 0.82 percent, Bank of Communications skidded 1.03 percent, China Life Insurance sank 0.65 percent, Jiangxi Copper was up 0.06 percent, Aluminum Corp of China (Chalco) added 0.53 percent, Yankuang Energy fell 0.24 percent, PetroChina slumped 0.84 percent, China Petroleum and Chemical (Sinopec) increased 0.37 percent, Huaneng Power lost 0.40 percent, China Shenhua Energy declined 0.83 percent, Gemdale tumbled 1.65 percent, Poly Developments retreated 1.28 percent and China Vanke shed 0.42 percent.

The lead from Wall Street suggests mild upside as the major averages opened lower on Tuesday and spent much of the day bouncing back and forth across the line before ending modestly higher.

The Dow gained 83.51 points or 0.24 percent to finish at 35,416.98, while the NASDAQ added 40.73 points or 0.29 percent to close at 14,281.76 and the S&P 500 rose 4.46 points or 0.10 percent to end at 4,554.89.

The choppy performance on Wall Street was the result of conflicting commentary regarding interest rates from Federal Reserve governors Christopher Waller and Michelle Bowman.

Speaking at an American Enterprise Institute event, Waller said he is "increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent."

But then Bowman said during a Utah Bankers Association and Salt Lake Chamber breakfast that she continues to expect the Fed we will need to increase rates further to keep policy sufficiently restrictive to bring inflation down to 2 percent.

Crude oil prices rose sharply Tuesday on hopes that OPEC will extend output cuts at Thursday's ministerial meeting. A weak dollar contributed as well to the jump in oil prices. West Texas Intermediate Crude oil futures for January ended up $1.55 or 2.1 percent at $76.41 a barrel.