China Stock Market Due For Profit Taking On Wednesday

(RTTNews) – The China stock market has moved higher in four straight sessions, improving more than 140 points or 4.4 percent along the way. The Shanghai Composite Index now sits just beneath the 3,410-point plateau although it may run out of steam on Wednesday.

The global forecast for the Asian markets is mixed to lower, with support from oil stocks likely offset by weakness from technology and retail companies. The European markets were up and the US bourses were down and the Asian markets figure to follow the latter lead.

The SCI finished modestly higher on Tuesday following gains from the financial shares and resource stocks.

For the day, the index advanced 30.03 points or 0.89 percent to finish at 3,409.21 after trading between 3,358.87 and 3,412.10. The Shenzhen Composite Index improved 26.93 points or 1.21 percent to end at 2,243.92.

Among the actives, Industrial and Commercial Bank of China collected 0.42 percent, while China Construction Bank added 0.33 percent, China Merchants Bank perked 0.07 percent, Bank of Communications rose 0.20 percent, China Minsheng Bank picked up 0.27 percent, China Life Insurance plunged 3.28 percent , Jiangxi Copper soared 3.35 percent, Aluminum Corp of China (Chalco) spiked 3.12 percent, Yankuang Energy surged 3.73 percent, PetroChina strengthened 1.32 percent, Huaneng Power fell 0.28 percent, China Shenhua Energy climbed 1.30 percent, Gemdale retreated 1.75 percent, Poly Developments tumbled 2.59 percent, China Vanke lost 0.32 percent, China Fortune Land increased 0.63 percent, Beijing Capital Development was up 0.21 percent and Bank of China and China Petroleum and Chemical (Sinopec) were unchanged.

The lead from Wall Street is broadly negative as the major averages shook off early gains and quickly turned lower, finishing the day near session lows.

The Dow tumbled 491.27 points or 1.56 percent to finish at 30,946.99, while the NASDAQ plunged 343.01 points or 2.98 percent to close at 11,181.54 and the S&P 500 slumped 78.56 points or 2.01 percent to end at 3,821.55.

The initial strength on Wall Street partly reflected a positive reaction to news that China has cut quarantine times for international travelers in a big step toward easing Covid-19 controls.

But buying interest waned shortly after the start of trading, however, with lingering concerns about a potential recession continuing to weigh on the markets.

Negative sentiment may also have been generated in reaction to a report from the Conference Board showing US consumer confidence deteriorated to its lowest level in over a year in June.

Crude oil prices rose sharply on Tuesday, extending recent gains after Saudi Arabia and the United Arab Emirates indicated that they can barely increase oil production. West Texas Intermediate crude oil futures for August ended higher by $2.19 or 2 percent at $111.76 per 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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