Higher Open Anticipated For China Stock Market

(RTTNews) - The China stock market bounced higher again on Wednesday, one day after ending 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 3,025-point plateau and it may find continued strength on Thursday,

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian markets are expected to open in similar fashion.

The SCI finished slightly higher on Wednesday following gains from the oil companies and mixed performances from the financials, properties and resource stocks.

For the day, the index perked 4.31 points or 0.14 percent to finish at 3,023.08 after trading between 3,013.93 and 3,038.33. The Shenzhen Composite Index slipped 2.36 points or 0.13 percent to end at 1,872.15.

Among the actives, Industrial and Commercial Bank of China advanced 0.85 percent, while Bank of China collected 0.51 percent, China Construction Bank perked 0.16 percent, China Merchants Bank skidded 1.01 percent, Bank of Communications rallied 1.42 percent, China Life Insurance retreated 1.34 percent, Jiangxi Copper slumped 1.14 percent, Aluminum Corp of China (Chalco) climbed 1.13 percent, Yankuang Energy tumbled 1.69 percent, PetroChina added 0.56 percent, China Petroleum and Chemical (Sinopec) rose 0.18 percent, China Shenhua Energy eased 0.10 percent, Gemdale stumbled 1.74 percent, Poly Developments sank 0.73 percent, China Vanke was up 0.09 percent and Huaneng Power was unchanged.

The lead from Wall Street is strong as the major averages opened flat on Wednesday but took off as the day progressed, ending near session highs.

The Dow surged 221.71 points or 0.67 percent to finish at 33,274.58, while the NASDAQ rallied 210.23 points or 1.64 percent to end at 13,061.47 and the S&P 500 climbed 44.06 points or 1.05 percent to close at 4,237.86.

The strength on Wall Street came as stocks reacted positively to the Federal Reserve's widely expected decision to leave interest rates unchanged.

The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.

In economic news, payroll processor ADP said private sector employment in the U.S. increased less than expected in October. Also, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at a faster rate last month.

Oil futures settled lower on Wednesday, weighed down by concerns that higher borrowing costs will likely hurt growth and the outlook for fuel demand. West Texas Intermediate Crude oil futures for December ended down $$0.58 or 0.7 percent at $80.44 a barrel.