Upper opening predicted for Chinese stock market
(RTTNews) – China’s stock market headed south again on Wednesday, a day after snapping a three-day losing streak in which it fell nearly 55 points or 1.7%. The Shanghai Composite Index now sits just above the 3,275 plateau, although it may find new support on Thursday.
The global forecast for Asian markets is bullish on encouraging news for interest rates. European markets posted modest gains and US stocks surged, with Asian markets appearing to share the difference.
SCI ended slightly lower on Wednesday on losses in financials and resource stocks, while properties were mixed.
For the day, the index lost 1.68 points or 0.05% 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% to end at 2,194.54.
Among assets, Industrial and Commercial Bank of China lost 0.68%, while Bank of China lost 0.64%, China Construction Bank fell 0.18%, China Merchants Bank fell 0.77% , Bank of Communications fell 0.43%, China Life Insurance fell 1.37%. Jiangxi Copper fell 0.47%, Aluminum Corp of China (Chalco) fell 0.65%, Yankuang Energy fell 0.56%, PetroChina and China Shenhua Energy both fell 0.76%, China Petroleum and Chemical (Sinopec) fell 0.49%, Huaneng Power jumped 1.65%. , Gemdale fell 0.16%, Poly Developments climbed 1.12%, China Vanke fell 1.61%, China Fortune Land plunged 2.60% and Beijing Capital Development fell 0.66% .
Wall Street’s advance is broadly positive as major averages opened slightly higher on Wednesday but spiked late in the day after the FOMC rate decision.
The Dow Jones jumped 436.05 points or 1.37% to end at 32,197.59, while the NASDAQ jumped 469.85 points or 4.06% to end at 12,032.42 and the S&P 500 jumped 102.56 points or 2.62% to close at 4,023.61.
Stocks were flat in early trading, then accelerated higher following the Federal Reserve’s monetary policy decision and Fed Chairman Jerome Powell’s post-meeting press conference.
While the Fed announced a new interest rate of 75 basis points, as widely expected, Powell’s comments hinted at a slower pace of rate hikes in upcoming meetings.
Crude oil prices jumped on Wednesday after data showed a drop in U.S. crude inventories last week, while cuts in Russian gas flows to Europe also contributed to oil’s sharp rise. West Texas Intermediate crude oil futures for September climbed $2.28 or 2.4% to $97.26 a barrel.
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