Higher Open Predicted For China Stock Market

(RTTNews) - The China stock market has moved higher in consecutive trading days, gathering more than 70 points or 2.3 percent in that span. The Shanghai Composite Index now sits just above the 3,135-point plateau and it's tipped to open in the green again on Wednesday.

The global forecast for the Asian markets is upbeat thanks to an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The SCI finished sharply higher on Tuesday following gains from the property stocks, while the financials were soft.

For the day, the index jumped 37.25 points or 1.20 percent to finish at 3,135.89 after trading between 3,090.44 and 3,145.76. The Shenzhen Composite Index spiked 51.13 points or 2.69 percent to end at 1,951.63.

Among the actives, Industrial and Commercial Bank of China tumbled 2.11 percent, while Bank of China skidded 1.04 percent, China Construction Bank declined 1.79 percent, China Merchants Bank shed 0.68 percent, Bank of Communications retreated 1.42 percent, China Life Insurance dipped 0.20 percent, Yankuang Energy stumbled 1.84 percent, PetroChina dropped 1.02 percent, China Petroleum and Chemical (Sinopec) slumped 1.61 percent, Huaneng Power fell 0.24 percent, China Shenhua Energy was down 0.21 percent, Gemdale surged 4.18 percent, Poly Developments spiked 0.97 percent, China Vanke rallied 1.07 percent and Jiangxi Copper and Aluminum Corp of China (Chalco) were unchanged.

The lead from Wall Street is broadly positive as the major averages opened slightly higher on Tuesday but accelerated as the day progressed, ending near session highs.

The Dow jumped 292.69 points or 0.85 percent to finish at 34,852.67, while the NASDAQ surged 238.63 points or 1.74 percent to end at 13,943.76 and the S&P 500 rallied 64.32 points or 1.45 percent to close at 4.497.63.

The strength on Wall Street came as the latest batch of U.S. economic data helped ease recent concerns about the outlook for interest rates.

Consumer confidence in the U.S. deteriorated more than anticipated in August, according to a report released by the Conference Board. Also, the Labor Department said job openings in the U.S. decreased to 8.8 million on the last business day of July.

Oil prices climbed higher on Tuesday with traders weighing the likely impact of the Hurricane Idalia on energy operations in the Gulf of Mexico, while a weak dollar also contributed to the uptick. West Texas Intermediate Crude oil futures for October climbed $1.06 or 1.3 percent at $81.16 a barrel.