The China stock market has moved higher in three straight sessions, gathering more than 55 points or 1.8 percent along the way. The Shanghai Composite Index now sits just beneath the 3,300-point plateau and it’s tipped to open higher again on Wednesday.
The global forecast for the Asian markets suggests mild upside, again led by the technology stocks ahead of the Federal Reserve announcement later today. The European and U.S. markets were up and the Asian bourses figure to follow suit.
The SCI finished modestly higher on Tuesday following gains from the property stocks and insurance companies.
For the day, the index gained 16.87 points or 0.51 percent to finish at 3,295.68 after trading between 3,263.75 and 3,297.69. The Shenzhen Composite Index advanced 16.26 points or 0.74 percent to end at 2,205.36.
Among the actives, Industrial and Commercial Bank of China shed 0.20 percent, while China Construction Bank eased 0.16 percent, China Merchants Bank jumped 1.47 percent, China Life Insurance collected 0.20 percent, Ping An Insurance accelerated 1.73 percent, PetroChina lost 0.47 percent, Gemdale rallied 2.24 percent, Poly Developments added 0.66 percent, China Vanke increased 0.61 percent and China Petroleum and Chemical (Sinopec), China Shenhua Energy, China Minsheng Bank, Bank of China and Bank of Communications were unchanged.
The lead from Wall Street is upbeat as stocks moved mostly higher on Tuesday, although the Dow gave back almost all of its gains.
The Dow rose 2.27 points or 0.01 percent to finish at 27,995.60, while the NASDAQ spiked 133.67 points or 1.21 percent to end at 11,190.32 and the S&P 500 rose 17.66 points or 0.52 percent to close at 3,401.20.
A continued rebound by technology stocks contributed to higher close on Wall Street, with big-name companies like Tesla (TSLA), Netflix (NFLX), Oracle (ORCL) and Facebook (FB) posting standout gains.
However, trade was somewhat subdued ahead of the Federal Reserve’s monetary policy statement later today. The Fed is expected to leave interest rates unchanged, but traders will listen for any tweaks to the accompanying statement. The Fed’s latest economic projections may also be of note.
In economic news, the Fed said U.S. industrial production slowed more than expected in August. Also, the Labor Department noted an increase in U.S. import prices last month, with prices jumping by much more than expected.
Crude oil futures ended sharply higher Tuesday as news of the stoppage of energy operations in the Gulf of Mexico due to Hurricane Sally outweighed concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for October rose $1.02 or 2.7 percent at $38.28 a barrel.
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