Home Markets China Stock Market May Spin Its Wheels On Thursday

China Stock Market May Spin Its Wheels On Thursday

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(RTTNews) – The China stock market has moved higher in two straight sessions, collecting more than 15 points or 0.5 percent along the way. The Shanghai Composite Index now rests just above the 3,455-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is mixed to lower on mixed earnings news and rising crude oil prices. The European markets were up and the U.S. bourses were down and the Asian markets figure to split the difference.

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

For the day, the index gained 14.46 points or 0.42 percent to finish at the daily high of 3,457.07 after moving as low as 3,423.32. The Shenzhen Composite Index advanced 19.01 points or 0.83 percent to end at 2,300.94.

Among the actives, Industrial and Commercial Bank of China sank 0.76 percent, while China Construction Bank shed 0.57 percent, China Merchants Bank lost 0.60 percent, Bank of Communications fell 0.41 percent, China Life Insurance collected 1.67 percent, Jiangxi Copper plunged 3.77 percent, Aluminum Corp of China (Chalco) dropped 0.90 percent, Yanzhou Coal soared 4.03 percent, PetroChina gained 0.72 percent, China Petroleum and Chemical (Sinopec) advanced 0.95 percent, Huaneng Power surged 5.28 percent, China Shenhua Energy rallied 2.09 percent, Gemdale jumped 1.83 percent, Poly Developments was up 0.07 percent, China Vanke retreated 0.90 percent, China Fortune Land perked 0.98 percent, Beijing Capital Development spiked 1.79 percent and Bank of China was unchanged.

The lead from Wall Street is soft as stocks saw a lack of direction on Wednesday, bouncing back and forth across the unchanged line before ending modestly lower.

The Dow shed 164.55 points or 0.48 percent to finish at 33,820.38, while the NASDAQ lost 39.19 points or 0.28 percent to end at 14,051.03 and the S&P 500 fell 3.54 points or 0.08 percent to close at 4,183.18.

Stocks initially lacked direction as traders looked ahead to the Federal Reserve’s monetary policy announcement, although the choppy trading continued after the Fed announced its widely expected decision to maintain ultra-easy policy.

The Fed left interest rates and asset purchases unchanged even as the central bank upgraded its assessment of the U.S. economy, adding that the sectors most affected by the coronavirus pandemic remain weak but have improved.

Traders were also reacting to the latest earnings news from several big-name companies as Alphabet (GOOGL) and Visa (V) beat the street while Amgen (AMGN) and Boeing (BA) disappointed.

Crude oil prices moved higher Wednesday amid hopes energy demand will increase in the near future. A much smaller than expected increase in U.S. crude inventories last week also contributed to oil’s advance. West Texas Intermediate Crude oil futures for June ended higher by $0.92 or 1.5 percent at a six-week high of $63.86 a barrel.