Mild Rebound Anticipated For China Stock Market

(RTTNews) - The China stock market on Tuesday wrote a finish to the two-day winning streak in which it had improved almost 50 points or 1.7 percent. The Shanghai Composite Index now rests just beneath the 3,060-point plateau although it's expected to see a slight bump on Wednesday.

The global forecast for the Asian markets suggests mild upside on continuing optimism over the outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The SCI finished slightly lower on Tuesday following losses from the properties and mixed performances from the financials and resource companies.

For the day, the index eased 1.14 points or 0.04 percent to finish at 3,057.27 after trading between 3,042.47 and 3,064.58. The Shenzhen Composite Index rose 3.25 points or 0.17 percent to end at 1,918.22.

Among the actives, Industrial and Commercial Bank of China rose 0.21 percent, while Bank of China rallied 1.30 percent, China Construction Bank collected 0.81 percent, China Merchants Bank skidded 1.09 percent, Bank of Communications jumped 1.77 percent, China Life Insurance tumbled 2.54 percent, Jiangxi Copper tanked 1.81 percent, Aluminum Corp of China (Chalco) shed 0.68 percent, Yankuang Energy added 0.53 percent, Huaneng Power declined 1.18 percent, China Shenhua Energy gained 0.58 percent, Gemdale slumped 1.14 percent, Poly Developments eased 0.09 percent, China Vanke fell 033 percent and China Petroleum and Chemical (Sinopec) and PetroChina were unchanged.

The lead from Wall Street is mildly positive as the major averages shook off early weakness to quickly move higher and finish with modest gains.

The Dow added 56.74 points or 0.17 percent to finish at 34,152.74, while the NASDAQ jumped 121.08 points or 0.90 percent to end at 13,639.86 and the S&P 500 rose 12.40 points or 0.28 percent to close at 4,378.38.

Profit taking contributed to the initial weakness on Wall Street as traders looked to cash in on the recent strength in the markets. But selling pressure waned shortly after the start of trading, with continued optimism about the outlook for interest rates contributing to the rebound.

The rebound by stocks also came as treasury yields showed a notable move back to the downside after surging in the previous session.

Traders also looked ahead to speeches by Federal Reserve Chair Jerome Powell later today and Thursday. Powell is due to deliver opening remarks at the Division of Research and Statistics Centennial Conference and participate in a policy panel discussions.

Crude oil prices tumbled on Tuesday as concerns about the outlook for fuel demand offset recent decisions by Russia and Saudi Arabia to extend production cuts to the end of the year. West Texas Intermediate Crude oil futures for December sank $3.45 or 4.3 percent at $77.37 a barrel.