China Stock Market Tipped To Open To The Upside

(RTTNews) - Ahead of the long holiday weekend for Labor Day, the China stock market had snapped the four-day winning streak in which it had gathered almost 100 points or 3 percent. The Shanghai Composite Index now sits just above the 3,100-point plateau although it figures to rebound on Monday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates. The European and U.S. bourses finished solidly higher and the Asian markets are expected to open in similar fashion.

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

For the day, the index shed 8.22 points or 0.26 percent to finish at 3,104.82 after trading between 3,104.29 and 3,123.29. The Shenzhen Composite Index sank 12.36 points or 0.70 percent to end at 1,756.08.

Among the actives, Industrial and Commercial Bank of China advanced 0.93 percent, while Bank of China added 0.44 percent, China Construction Bank collected 0.71 percent, China Merchants Bank retreated 1.63 percent, Bank of Communications climbed 1.18 percent, China Life Insurance shed 0.49 percent, Jiangxi Copper rose 0.38 percent, Aluminum Corp of China (Chalco) fell 0.27 percent, Yankuang Energy rallied 1.27 percent, PetroChina gained 0.49 percent, China Petroleum and Chemical (Sinopec) strengthened 1.44 percent, Huaneng Power jumped 1.52 percent, China Shenhua Energy spiked 2.13 percent, Gemdale skyrocketed 6.70 percent, Poly Developments plunged 3.99 percent and China Vanke tumbled 1.98 percent.

The lead from Wall Street is strong as the major averages opened sharply higher on Friday and remained in the green throughout the session.

The Dow surged 449.98 points or 1.18 percent to finish at 38,675.68, while the NASDAQ rallied 315.33 points or 1.99 percent to close at 16,156.33 and the S&P 500 advanced 63.59 points or 1.26 percent to end at 5,127.79. For the week, the S&P 500 climbed 0.6 percent, the Dow added 1.1 percent and the NASDAQ jumped 1.4 percent.

The rally on Wall Street followed the release of a closely watched Labor Department showing employment in the U.S. increased less than expected in April. The data helped generate optimism about the outlook for interest rates following the Federal Reserve's monetary policy meeting earlier in the week.

Also, a separate report released by the Institute for Supply Management showed U.S. service sector activity unexpectedly contracted in April.

Oil prices fell on Friday, pushing the most active futures contract to their biggest weekly decline in about three months on concerns about the outlook for global oil demand. West Texas Intermediate Crude oil futures for June ended down by $0.84 or 1.06 percent at $78.11 a barrel.

Closer to home, China will see April results for the services PMI from Caixin later this morning; in March, the index score was 52.7.