Rebound Called For China Stock Market

(RTTNews) - The China stock market on Tuesday ended the two-day winning streak in which it had gathered more than 80 points or 2.7 percent. The Shanghai Composite Index now sits just beneath the 3,065-point plateau although it's expected to bounce higher again on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism over the outlook for interest rates. The European and U.S. markets finished higher and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly lower on Tuesday following mixed performances from the financials, properties and resource stocks.

For the day, the index sank 13.32 points or 0.43 percent to finish at 3,064.49 after trading between 3,047.46 and 3,078.28. The Shenzhen Composite Index lost 8.05 points or 0.40 percent to end at 2,019.81.

Among the actives, Industrial and Commercial Bank of China rose 0.25 percent, while China Construction Bank shed 0.57 percent, China Merchants Bank eased 0.03 percent, Bank of Communications collected 0.44 percent, China Life Insurance added 0.57 percent, Jiangxi Copper slid 0.23 percent, Aluminum Corp of China (Chalco) was up 0.24 percent, Yankuang Energy tumbled 2.38 percent, PetroChina increased 0.20 percent, China Petroleum and Chemical (Sinopec) perked 0.23 percent, Huaneng Power soared 2.73 percent, China Shenhua Energy dropped 0.86 percent, Gemdale skidded 1.10 percent, Poly Developments slipped 0.28 percent, China Vanke improved 0.21 percent, China Fortune Land sank 0.87 percent, Beijing Capital Development surged 5.48 percent and Bank of China was unchanged.

The lead from Wall Street is positive as the major averages accelerated Tuesday morning, faded in the afternoon but steadied going into the close.

The Dow surged 333.83 points or 1.02 percent to finish at 33,160.83, while the NASDAQ advanced 51.68 points or 0.49 percent to end at 10,616.20 and the S&P 500 gained 21.31 points or 0.56 percent to close at 3,828.11.

The higher close on Wall Street reflected recent upward momentum, with the major averages adding to the strong gains posted Monday and last Friday to further offset last week's pullback.

The continued strength also came as traders awaited the outcome of Tuesday's U.S. midterm elections, which will determine control of Congress.

The early afternoon pullback by stocks coincided with a steep drop by Bitcoin and other cryptocurrencies, which followed news Binance, the world's largest cryptocurrency exchange, reached a deal to buy competitor FTX.

Crude oil prices drifted lower on Tuesday as reports showing a surge in COVID-19 cases in China raised concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for December ended lower by $2.88 or 3.1 percent at $88.91 a barrel.

Closer to home, China will release October figures for consumer and producer prices later this morning. Overall inflation is expected to rise 0.3 percent on month and 2.4 percent on year after added 0.3 percent on month and 2.8 percent on year in September. Producer prices are expected to sink 1.5 percent on year after rising 0.9 percent in the previous month.