Higher open forecast for Chinese stock market

(RTTNews) – China’s stock market moved south again on Wednesday, a day after ending its three-day losing streak in which it fell nearly 55 points, or 1.7 percent. The Shanghai Composite Index is now just above the 3.275-point plateau, although it may find renewed support on Thursday.

The global outlook for Asian markets is bullish on encouraging news about interest rates. European markets posted modest gains and US markets rose, and Asian markets share the difference.

The SCI ended slightly lower on Wednesday after losses in financials and commodity stocks, while properties were mixed.

For the day, the index fell 1.68 points or 0.05 percent to end at 3,275.76 after trading between 3,265.73 and 3,282.57. The Shenzhen Composite Index gained 7.31 points or 0.33 percent to finish at 2,194.54.

Among the active, the Industrial and Commercial Bank of China lost 0.68 percent, while the Bank of China lost 0.64 percent, the China Construction Bank fell 0.18 percent, the China Merchants Bank fell 0.77 percent, the Bank of Communications fell 0.43 percent, China Life Insurance fell 1.37 percent, Jiangxi Copper fell 0.47 percent, Aluminum Corp of China (Chalco) fell 0.65 percent, Yankuang Energy fell 0.56 percent, PetroChina and China Shenhua Energy both gave up 0.76 percent, China Petroleum and Chemical (Sinopec) fell 0.49 percent, Huaneng Power rose 1.65 percent, Gemdale fell 0.16 percent, Poly Developments climbed 1.12 percent, China Vanke stumbled 1, 61 percent, China Fortune Land collapsed 2.60 percent and Beijing Capital Development gave away 0.66 percent.

Wall Street’s lead is generally positive as key averages opened slightly higher on Wednesday but rocketed later in the day following the FOMC rate decision.

The Dow peaked 436.05 points or 1.37 percent to end at 32,197.59, while the NASDAQ rose 469.85 points or 4.06 percent to end at 12,032.42 and the S&P 500 rose 102. 56 points or 2.62 percent to close at 4,023.61.

Shares were stable in early trading and then accelerated upward following the Federal Reserve’s monetary policy decision and the press conference after Fed Chair Jerome Powell’s meeting.

While the Fed announced another 75 basis point interest rate, as widely expected, Powell’s comments hinted at a slowdown in the pace of rate hikes at future meetings.

Crude oil prices moved higher on Wednesday after data last week showed a drop in US crude inventories, while the reduction in Russian gas flows to Europe also contributed to the oil’s soaring. West Texas Intermediate crude futures for September climbed $2.28 or 2.4 percent to $97.26 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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