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China Stock Market May Challenge Resistance At 3,600 Points

(RTTNews) – The China stock market on Wednesday snapped the two-day slide in which it had retreated more than 45 points or 0.6 percent. The Shanghai Composite Index now rests just above the 3,560-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is cautiously optimistic on easing concerns for the outlook for interest rates. The European markets were up and the U.S. bourses were mostly higher and the Asian markets are also tipped to open in the green.

The SCI finished modestly higher on Wednesday following a mixed picture from the properties and weakness from the financial and resource stocks.

For the day, the index gained 14.83 points or 0.42 percent to finish at 3,561.76 after trading between 3,515.65 and 3,569.13. The Shenzhen Composite Index advanced 30.57 points or 1.29 percent to end at 2,394.39.

Among the actives, Industrial and Commercial Bank of China shed 0.63 percent, while Bank of China fell 0.32 percent, China Construction Bank lost 0.66 percent, China Merchants Bank eased 0.11 percent, Bank of Communications dipped 0.22 percent, China Life Insurance retreated 1.28 percent, Jiangxi Copper was down 0.04 percent, Yanzhou Coal plummeted 6.89 percent, PetroChina tumbled 4.17 percent, China Petroleum and Chemical (Sinopec) plunged 3.99 percent, Huaneng Power tanked 5.72 percent, China Shenhua Energy sank 3.24 percent, Gemdale rose 0.17 percent, Poly Developments skidded 1.28 percent and China Vanke and Aluminum Corp of China (Chalco) were unchanged.

The lead from Wall Street is mostly upbeat as the NASDAQ opened higher and remained solidly in the green. The Dow and S&P spent much of the day in negative territory, with the later managing to climb into positive territory and the former closing just under the line.

The Dow eased 0.53 points to finish at 34,377.81, while the NASDAQ jumped 105.71 points or 0.73 percent to close at 14,571.63 and the S&P 500 rose 13.15 points or 0.30 percent to end at 4,363.80.

The higher close on Wall Street came as a report from the Labor Department showed consumer prices rose by slightly more than expected in September, but the data was not seen as likely to accelerate the Federal Reserve’s tapering plans.

Also, the minutes of the Fed’s September meeting outlined the central bank’s plans to gradually scale back its asset purchases. Participants generally agreed that a gradual tapering of asset purchases that concludes around the middle of next year would likely be appropriate if the economic recovery remained broadly on track.

Crude oil prices drifted lower on Wednesday, weighed down by concerns the slowdown in global economic growth could weaken the outlook for energy demand. West Texas Intermediate Crude oil futures for November eased $0.20 or 0.3 percent at $80.44 a barrel.

Closer to home, China will see September numbers for consumer and producer prices later this morning. CPI is expected to rise 0.3 percent on month and 0.9 percent on year, up from 0.1 percent on month and 0.8 percent on year in August. PPI is called higher by an annual 10.5 percent, accelerating from 9.5 percent a month earlier.