Higher Open Anticipated For China Stock Market

(RTTNews) - The China stock market bounced higher again on Monday, one session after ending the three-day winning streak in which it had gathered more than 70 points or 2.2 percent. The Shanghai Composite Index now rests just beneath the 3,370-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is upbeat on optimism over easing tariff concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly higher on Monday following gains from the property stocks and resource companies, while the financial sector came in mixed.

For the day, the index gained 27.25 points or 0.82 percent to finish at 3,369.24 after trading between 3,344.27 and 3,372.47. The Shenzhen Composite Index rallied 33.44 points or 1.70 percent to end at 2,004.13.

Among the actives, Industrial and Commercial Bank of China dipped 0.14 percent, while Bank of China fell 0.35 percent, Agricultural Bank of China perked 0.18 percent, China Merchants Bank collected 0.74 percent, Bank of Communications strengthened 1.20 percent, China Life Insurance improved 0.77 percent, Jiangxi Copper jumped 1.81 percent, Aluminum Corp of China (Chalco) soared 2.65 percent, Yankuang Energy was up 0.08 percent, PetroChina added 0.49 percent, China Petroleum and Chemical (Sinopec) rose 0.18 percent, Huaneng Power slid 0.27 percent, China Shenhua Energy sank 0.72 percent, Gemdale increased 0.72 percent, Poly Developments gained 0.61 percent and China Vanke climbed 1.03 percent.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Monday and remained well in the green throughout the trading day.

The Dow surged 1,160.72 points or 2.81 percent to finish at 42,410.10, while the NASDAQ soared 779.43 points or 4.35 percent to close at 18,708.34 and the S&P 500 rallied 184.28 points or 3.26 percent to end at 5,844.19.

The rally on Wall Street came following news of a U.S.-China trade deal that drastically reduces the massive tariffs on each other's goods.

The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff. The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.

The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning May 14. Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.

Crude oil showed another strong move to the upside on Monday, riding optimism about the outlook for demand after the U.S. and China reached their trade deal. West Texas Intermediate crude for June delivery jumped $0.93 or 1.5 percent to $61.95 a barrel.