Win Streak May Continue For China Stock Market

(RTTNews) - The China stock market has moved higher in three straight sessions, collecting more than 55 points or 1.3 percent along the way. The Shanghai Composite Index now sits just above the 4,100-point plateau and it's expected to tick higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic on hopes for an end to the conflict in the Middle East. The European markets were down and the U.S. bourse were up and the Asian markets figure to follow the latter lead.

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

For the day, the index increased 21.18 points or 0.52 percent to finish at 4,106.26 after trading between 4,074.68 and 4,106.84. The Shenzhen Composite Index climbed 27.64 points or 1.00 percent to end at 2,789.00.

Among the actives, Industrial and Commercial Bank of China declined 1.31 percent, while Bank of China dipped 0.13 percent, Agricultural Bank of China retreated 1.53 percent, China Merchants Bank slipped 0.33 percent, Bank of Communications and Huaneng Power both stumbled 0.71 percent, China Life Insurance and Gemdale both sank 0.72 percent, Jiangxi Copper and Aluminum Corp of China (Chalco) both slumped 0.58 percent, Yankuang Energy jumped 1.84 percent, PetroChina eased 0.17 percent, China Petroleum and Chemical (Sinopec) skidded 1.09 percent, China Shenhua Energy fell 0.24 percent, Poly Developments lost 0.67 percent and China Vanke shed 0.51 percent.

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

The Dow jumped 340.65 points or 0.69 percent to finish at 49,490.03, while the NASDAQ rallied 397.60 points or 1.64 percent to end at a record 23,001.78 and the S&P 500 climbed 73.89 points or 1.05 percent to close at 7,137.90, also a record.

The rebound on Wall Street came in reaction to news that President Donald Trump has extended the U.S. ceasefire with Iran, although it will continue to blockade all maritime traffic entering and exiting Iranian ports.

Iran dismissed Trump's ceasefire extension as meaningless and said the Strait of Hormuz will remain closed until the U.S. blockade is lifted.

Crude oil prices soared Wednesday thanks to supply disruption concerns due to the ongoing blockade of the Strait of Hormuz. West Texas Intermediate crude for June delivery was up $3.54 or 3.95 percent at $93.21 per barrel.

Traders also continue to express optimism about the strength of corporate results, with earnings season off to a solid start.