Renewed Selling Pressure Expected For China Stock Market
(RTTNews) - The China stock market bounced higher again on Wednesday, one day after snapping the two-day winning streak in which it had jumped almost 110 points or 2.7 percent. The Shanghai Composite Index now sit just beneath the 4,110-point plateau although it may head south ag
(RTTNews) - The China stock market bounced higher again on Wednesday, one day after snapping the two-day winning streak in which it had jumped almost 110 points or 2.7 percent. The Shanghai Composite Index now sit just beneath the 4,110-point plateau although it may head south again on Thursday.
The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The SCI finished modestly higher on Wednesday following gains from the properties, weakness from the financials and a mixed picture from the resource stocks.
For the day, the index added 16.18 points or 0.40 percent to finish at 4,108.08 after trading between 4,073.73 and 4,109.96. The Shenzhen Composite Index gained 20.56 points or 0.73 percent to end at 2,838.35.
Among the actives, Industrial and Commercial Bank of China sank 0.81 percent, while Bank of China retreated 1.66 percent, Agricultural Bank of China slumped 1.21 percent, China Merchants Bank dropped 0.88 percent, Bank of Communications shed 0.72 percent, China Life Insurance lost 0.69 percent, Jiangxi Copper surged 4.22 percent, Aluminum Corp of China (Chalco) skidded 0.99 percent, Yankuang Energy plunged 3.70 percent, PetroChina tumbled 1.81 percent, China Petroleum and Chemical (Sinopec) dipped 0.21 percent, Huaneng Power improved 0.51 percent, China Shenhua Energy contracted 1.55 percent, Gemdale stumbled 1.63 percent, Poly Developments gained 0.59 percent and China Vanke added 0.65 percent.
The lead from Wall Street is weak as the major averages opened slightly higher on Wednesday and hugged the line before tumbling after the Federal Reserve's rate decision.
The Dow dropped 507.12 points or 0.98 percent to finish at 51,492.55, while the NASDAQ slumped 354.69 points or 1.34 percent to close at 26,021.66 and the S&P 500 sank 91.25 points or 1.21 percent to end at 7,420.10.
The weakness that emerged on Wall Street came after the Fed left interest rates unchanged as widely expected, but projections suggest that rates could be higher by end of the year.
