China Stock Market Poised To End Losing Streak

(RTTNews) – The China stock market has finished lower in three straight sessions, sinking more than 60 points or 2 percent along the way. The Shanghai Composite Index now sits just above the 3,215-point plateau and it may halt its slide on Tuesday.

The global forecast for the Asian markets is upbeat, with further bargain hunting expected amidst rising oil prices. The European and U.S. markets were sharply higher and the Asian bourses are tipped to also open in the green.

The SCI finished barely lower as losses from the broader market were offset by gains from the financial shares and property stocks.

For the day, the index eased 1.88 points or 0.06 percent to finish at 3,217.53 after trading between 3,210.89 and 3,238.18. The Shenzhen Composite Index shed 16.17 points or 0.75 percent to end at 2,126.88.

Among the actives, Industrial and Commercial Bank of China climbed 1.02 percent, while Bank of China jumped 1.57 percent, China Construction Bank advanced 0.81 percent, China Merchants Bank rose 0.19 percent, Bank of Communications collected 0.22 percent, China Life Insurance added 0.37 percent, Ping An Insurance was up 0.24 percent, PetroChina rose 0.24 percent, China Shenhua Energy rallied 1.53 percent, Gemdale surged 3.21 percent, Poly Developments accelerated 1.64 percent, China Vanke soared 2.82 percent and China Petroleum and Chemical (Sinopec) was unchanged.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Monday, extending gains from the previous session with broadly based support.

The Dow spiked 410.10 points or 1.51 percent to finish at 27,584.06, while the NASDAQ surged 203.96 points or 1.87 percent to end at 11,117.53 and the S&P 500 jumped 53.14 points or 1.61 percent to close at 3,351.60.

The strength on Wall Street followed a rally in the European markets, as traders picked up stocks at relatively reduced levels.

Traders seem to shrug off recent concerns about a surge in coronavirus cases and uncertainty about the U.S. presidential election.

The markets also benefitted from optimism about a new coronavirus bill after House Speaker Nancy Pelosi said a new package is still possible. House Democrats plan to unveil a new $2.4 trillion coronavirus relief bill. The price tag is $1 trillion less than a stimulus package the House passed in May but may still be too high for Republicans.

Crude oil prices rose on Monday and the most active futures contract ended notably higher as optimism about a new U.S. coronavirus relief package helped ease concerns about energy demand and supported oil prices.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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