Higher Open Anticipated For China Stock Market

(RTTNews) - The China stock market bounced higher again on Monday, one session after ending the two-day winning streak in which it had jumped more than 80 points or 2.2 percent. The Shanghai Composite Index now sits just above the 3,660-point plateau and it may see additional support on Tuesday.

The global forecast for the Asian markets is upbeat on sinking oil prices and rebounding technology shares. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly higher on Monday as gains from the energy, manufacturing and industrial stocks were capped by weakness from the cement and technology sectors.

For the day, the index rose 11.61 points or 0.32 percent to finish at 3,660.79 after trading between 3,653.05 and 3,679.09.

The lead from Wall Street is broadly positive as the major averages opened sharply higher and continued to accelerate throughout the day, ending near session highs.

The Dow surged 1,104.02 points or 2.15 percent to finish at 52,389.75, while the NASDAQ rallied 673.71 points or 2.74 percent to close at 25,253.14 and the S&P 500 spiked 173.08 points or 2.35 percent to end at 7,549.94.

The rally on Wall Street came as traders continued to pick up stocks at relatively reduced levels following last week's historic sell-off. Technology stocks led the way higher again, helping the NASDAQ recover further from its lowest levels in over six months.

The extended recovery by tech stocks comes despite a sharp pullback by shares of Nvidia (NVDA) after the chipmaker said it would open an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort.

Buying interest has also been generated in reaction to a steep drop by the price of crude oil, with U.S. crude oil futures plunging by more than 3 percent.

Crude oil prices plummeted on Monday after U.S. President Donald Trump downplayed the possibility for fresh strikes on Iran that diminished supply disruption concerns. West Texas Intermediate crude for December delivery was down $3.25 or 3.58 percent at $87.58 per barrel.