Rally May Stall For China Stock Market

(RTTNews) - The China stock market has climbed higher in three straight sessions, improving more than 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just shy of the 3,390-point plateau, although it may run out of steam on Thursday.

The global forecast for the Asian markets is negative on concerns over rising bond yields. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets also figure to open under pressure.

The SCI finished modestly higher on Wednesday as gains from the financial shares and energy companies were capped by weakness from the property sector.

For the day, the index gained 7.10 points or 0.21 percent to finish at 3,387.57 after trading between 3,380.21 and 3,394.75. The Shenzhen Composite Index perked 0.09 points or 0.00 percent to end at 2,010.01.

Among the actives, Industrial and Commercial Bank of China collected 0.14 percent, while Agricultural Bank of China perked 0.18 percent, Bank of Communications climbed 1.05 percent, China Life Insurance rose 0.39 percent, Jiangxi Copper strengthened 1.34 percent, Aluminum Corp of China (Chalco) spiked 2.41 percent, Yankuang Energy rallied 2.99 percent, PetroChina advanced 0.85 percent, China Petroleum and Chemical (Sinopec) improved 0.71 percent, Huaneng Power lost 0.40 percent, China Shenhua Energy accelerated 2.43 percent, Gemdale retreated 1.45 percent, Poly Developments shed 0.48 percent, China Vanke fell 0.29 percent and China Merchants Bank was unchanged.

The lead from Wall Street is bleak as the major averages opened lower on Wednesday and only got worse as the day progressed, ending near session lows.

The Dow tumbled 816.80 points or 1.91 percent to finish at 41,860.44, while the NASDAQ dropped 270.07 points or 1.41 percent to close at 18,872.64 and the S&P 500 sank 95.85 points or 1.61 percent to end at 5,844.61.

The weakness on Wall Street was the result of a continued increase by bond yields, with the 30-year bond yield climbing above 5 percent due to concerns a new U.S. tax bill could worsen the country's deficit.

President Donald Trump's sweeping tax and spending bill is one step closer to a full vote in the House of Representatives, with economists warning the proposal would add more than $2.5 trillion to the federal debt over the next decade.

Treasury yields saw further upside after the Treasury Department revealed this month's auction of $16 billion worth of 20-year bonds attracted below average demand.

Crude oil futures fell under pressure Wednesday after a report released by the Energy Information Administration showed U.S. crude oil inventories unexpectedly increased last week. West Texas Intermediate crude for July delivery slid $0.46 to 0.7 percent to $61.57 a barrel.