Higher Open Called For China Stock Market

(RTTNews) - The China stock market on Tuesday ended the three-day losing streak in which it had stumbled more than 75 points or 2.6 percent. The Shanghai Composite Index now sits just above the 2,865-point plateau and it's looking at another green light again on Wednesday.

The global forecast for the Asian markets is cautiously optimistic after recent volatility, with bargain hunting expected. The European markets were mixed and the U.S. bourses were higher and the Asian markets figure to split the difference. The SCI finished slightly higher on Tuesday following gains from the property stocks, weakness from the financials and a mixed picture from the energy and resource companies.

For the day, the index added 6.59 points or 0.23 percent to finish at 2,867.28 after trading between 2,845.33 and 2,888.20. The Shenzhen Composite Index climbed 18.21 points or 1.18 percent to end at 1,567.03.

Among the actives, Industrial and Commercial Bank of China skidded 1.19 percent, while Bank of China retreated 1.28 percent, China Construction Bank declined 1.20 percent, China Merchants Bank stumbled 1.25 percent, Bank of Communications dropped 0.95 percent, China Life Insurance plummeted 6.06 percent, Jiangxi Copper eased 0.15 percent, Aluminum Corp of China (Chalco) rose 0.31 percent, Yankuang Energy added 0.42 percent, PetroChina advanced 0.83 percent, Huaneng Power rallied 2.04 percent, China Shenhua Energy sank 0.83 percent, Gemdale soared 3.31 percent, Poly Developments surged 3.87 percent, China Vanke jumped 1.47 percent and China Petroleum and Chemical (Sinopec) was unchanged.

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

The Dow jumped 294.39 points or 0.76 percent to finish at 38,997.66, while the NASDAQ rallied 166.77 points or 1.03 percent to end at 16,366.85 and the S&P 500 gained 53.70 points or 1.04 percent to close at 5,240.03.

The support on Wall Street came as investors picked up stocks at reduced levels following Monday's data-induced heavy selling.

Investors also reacted positively to the latest batch of corporate earnings news from the likes of Uber, CSX, Nvidia, Texas Instruments, Microsoft and JP Morgan Chase, among others.

Economic data was also better as the Commerce Department said the U.S. trade deficit narrowed in June. Also, the Atlanta Fed raised its third quarter growth projection for the U.S. economy, citing latest economic data.

Oil futures settled modestly higher on Tuesday, snapping a four-session losing streak, as the shutdown of Libya's 270,000 barrel per day Sharara oil field offered mild support. West Texas Intermediate Crude oil futures for September ended up $0.26 or 0.36 percent at $73.20 a barrel.

Closer to home, China will release July data for imports, exports and trade balance. Imports are expected to rise 3.5 percent on year after shrinking 2.3 percent in June. Exports are called higher by an annual 9.7 percent, up from 8.6 percent in the previous month. The trade surplus is pegged at $97.50 billion, easing from $99.05 billion a month earlier.