(RTTNews) – The Chinese stock market ended higher in three consecutive trading days, rallying more than 70 points or 2% along the way. The Shanghai Composite Index now sits just below the 3,590 point plateau, although it may run out of steam on Wednesday.
Global forecasts for Asian markets are mixed, with support from oil and financial stocks likely to be undermined by weakness in tech stocks. European markets were down and US stock markets were mixed and Asian markets should follow this latest lead.
The SCI ended slightly higher on Tuesday following gains in financial stocks, real estate stocks and resource companies.
For the day, the index added 7.01 points or 0.20% to end at 3,589.09 after trading between 3,577.36 and 3,598.38. The Shenzhen Composite Index rose 5.21 points or 0.21% to end at 2,520.37.
Among assets, Bank of China collected 0.33%, while China Construction Bank rose 0.17%, China Merchants Bank rose 0.12%, Bank of Communications gained 0.22%, Jiangxi Copper added 0.38%, Yanzhou Coal jumped 1.91%, PetroChina got 0.21%, China Petroleum and Chemical (Sinopec) fell 0.24%, Huaneng Power slipped 0.34%, China Shenhua Energy rose 1.08%, Gemdale rose 1.84%, Poly Developments rose 2.06%, China Vanke rose 0.10%, Beijing Capital Development rose 1.07% and Industrial and Commercial Bank of China, China Life Insurance, Aluminum Corp of China (Chalco) and Minsheng Bank remained unchanged.
Wall Street’s lead remains inconsistent, as the Dow Jones and S&P spent Tuesday bouncing off the unchanged line before ending higher. NASDAQ spent most of the session in the red and finished that way.
The Dow Jones jumped 194.55 points or 0.55% to close at 35,813.80, while the NASDAQ slipped 79.62 points or 0.50% to close at 15,775.14 and the S&P 500 increased 7.76 points or 0.17% to end at 4,690.70.
The tech-rich NASDAQ fell further from the intraday high set early in Monday as a continued rise in Treasury yields weighed on high-growth tech stocks.
Yields have risen significantly since President Joe Biden announced his intention to appoint Jerome Powell for a second term as Fed chairman. With the bullish movement, the yield of the ten-year benchmark bond ended at its highest closing level in a month.
On the other hand, the Dow benefited from strong gains from financial giants Goldman Sachs (GS) and JPMorgan Chase (JPM).
Crude oil futures stabilized sharply higher on Tuesday, rebounding strongly from earlier losses on the outlook for energy demand amid rising coronavirus cases in Europe and US plans to release oil from the strategic oil reserve. West Texas Intermediate crude oil futures for January still ended up $ 1.75 or 2.3% at $ 78.50 a barrel.
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