BEIJING (dpa-AFX) - The China stock market has finished lower in five straight sessions, sliding more than 50 points or 1.6 percent along the way. The Shanghai Composite Index remains just above the 2,860-point plateau although it may finally find traction on Thursday.
The global forecast for the Asian markets is positive on renewed optimism for the outlook on interest rates. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.
The SCI finished barely lower on Wednesday as mixed performances from the financial shares and insurance companies were offset by support from the property stocks.
For the day, the index eased 0.86 points or 0.03 percent to finish at 2,861.42 after trading between 2,858.57 and 2,888.77.
Among the actives, Industrial and Commercial Bank of China collected 0.52 percent, while Bank of China added 0.54 percent, China Construction Bank climbed 1.13 percent, China Merchants Bank fell 0.24 percent, China Life Insurance was up 0.08 percent, Ping An Insurance shed 0.60 percent, China Petroleum and Chemical (Sinopec) advanced 0.92 percent, China Shenhua Energy jumped 1.12 percent, Gemdale soared 2.54 percent, Poly Developments surged 3.37 percent, China Vanke spiked 2.78 percent and PetroChina was unchanged.
The lead from Wall Street is upbeat as stocks moved notably higher on Wednesday, extending gains from the previous session.
The Dow added 207.39 points or 0.82 percent to 25,539.57, while the NASDAQ gained 48.36 points or 0.64 percent to 7,575.48 and the S&P 500 rose 22.88 points or 0.82 percent to 2,826.15.
Stocks continued to benefit from optimism about a potential interest rate cut after Federal Reserve Chairman Jerome Powell pledged to sustain the U.S. economic expansion. His comments were seen as an indication the Fed may lower interest rates if global trade disputes weigh down economic growth.
A report from payroll processor ADP showed much weaker than expected private sector job growth in May, initially generating negative sentiment but was later seen as adding to the case for a rate cut.
Crude oil prices drifted lower on Wednesday, after data showed a big increase in U.S. crude stockpiles in the week ended May 31. West Texas Intermediate crude oil futures for July ended down $1.80 or 3.4 percent at $51.68 a barrel.
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