Rebound Anticipated For China Stock Market

(RTTNews) - The China stock market on Tuesday snapped the two-day winning streak in which it had jumped almost 70 points or 2.3 percent. The Shanghai Composite Index now sits just above the 3,080-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is upbeat on bargain hunting and renewed optimism over earnings. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The SCI finished slightly lower on Tuesday following losses from the financials, properties and insurance companies.

For the day, the index eased 3.98 points or 0.13 percent to finish at 3,080.96 after trading between 3,074.22 and 3,099.92. The Shenzhen Composite Index picked up 7.27 points or 0.36 percent to end at 2,005.08.

Among the actives, China Merchants Bank sank 0.71 percent, while China Life Insurance plunged 4.48 percent, Ping An Insurance stumbled 0.83 percent, China Minsheng Bank dipped 0.29 percent, Jiangxi Copper shed 0.51 percent, Aluminum Corp of China (Chalco) dropped 0.95 percent, Yankuang Energy added 0.34 percent, PetroChina fell 0.39 percent, Huaneng Power jumped 1.92 percent, China Shenhua Energy lost 0.61 percent, Gemdale plummeted 3.23 percent, Poly Developments retreated 1.76 percent, China Vanke slumped 1.33 percent, China Fortune Land skidded 1.18 percent, Beijing Capital Development weakened 1.56 percent and Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Bank of Communications and China Petroleum and Chemical (Sinopec) all were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Tuesday, faded midday but bounced higher again heading into the close.

The Dow surged 337.98 points or 1.12 percent to finish at 30,525.80, while the NASDAQ advanced 96.60 points or 0.90 percent to end at 10,772.40 and the S&P 500 climbed 42.03 points or 1.14 percent to close at 3,719.98.

The initial strength on Wall Street reflected a positive reaction to upbeat earnings news from companies like Goldman Sachs (GS) and Johnson & Johnson (JNJ), which helped ease concerns about the strength of the earnings season.

In economic news, the Federal Reserve released a report showing industrial production increased by more than expected in September.

Crude oil prices fell sharply on Tuesday after a volatile session amid uncertainty about the outlook for energy demand. West Texas Intermediate Crude oil futures for November slumped $2.64 or 3.1 percent at $82.82 a barrel.