BEIJING (dpa-AFX) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had advanced almost 100 points or 3.3 percent. The Shanghai Composite Index now rests just above the 2,885-point plateau and the it's tipped to open in the green again on Tuesday.
The global forecast for the Asian markets is cautiously optimistic ahead of the FOMC's rate decision on Wednesday. The European and U.S. bourses were slightly higher and the Asian markets are tipped to follow that lead.
The SCI finished slightly higher on Monday as gains from the properties and financials were offset by weakness from the oil and insurance companies.
For the day, the index added 5.65 points or 0.20 percent to finish at 2,887.62 after trading between 2,877.39 and 2,902.48. The Shenzhen Composite Index eased 2.94 points or 0.20 percent to end at 1,502.12.
Among the actives, Industrial and Commercial Bank of China added 0.17 percent, while Bank of China collected 0.27 percent, China Merchants Bank advanced 0.99 percent, China Construction Bank rose 0.55 percent, China Life Insurance eased 0.19 percent, Ping An Insurance and PetroChina both shed 0.71 percent, China Petroleum and Chemical (Sinopec) sank 0.38 percent, China Shenhua Energy soared 2.92 percent, Gemdale slid 0.50 percent, Poly Developments climbed 0.86 percent, China Vanke was up 0.29 percent and CITIC Securities tumbled 1.33 percent.
The lead from Wall Street offers mild upside as stocks opened higher on Monday, gave ground in the afternoon but still finished in the green.
The Dow added 22.92 points or 0.09 percent to 26,112.53, while the NASDAQ gained 48.37 points or 0.62 percent to 7,845.02 and the S&P 500 rose 2.69 points or 0.09 percent to 2,889.67.
The strength on Wall Street reflected optimism the Fed will signal a near-term interest rate cut when announcing its monetary policy decision on Wednesday. Many expect the Fed to leave interest rates unchanged but alter its accompanying statement to possibly cutting rates in the near future.
Disappointing economic data reinforced optimism about a potential rate cut, as the New York Fed reported a sharp downward turn in regional manufacturing activity in June. Also, the National Association of Home Builders noted a pullback in homebuilder confidence in June.
Crude oil prices drifted lower on Monday amid renewed concerns about energy demand prospects due to economic slowdown in China. West Texas Intermediate Crude oil futures for July ended down $0.58 or 1.1 percent at $51.93 a barrel.
Closer to home, China will provide May numbers for new home prices later today; in April, prices were up 0.62 percent on month.
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