BEIJING (dpa-AFX) - The China stock market bounced higher again, one session after it had ended the four-day winning streak in which it had gathered almost 60 points or 2 percent. The Shanghai Composite Index now rests just above the 2,950-point plateau although it's expected to open under pressure again on Wednesday.
The global forecast for the Asian markets suggests mild consolidation ahead of the Federal Reserve's announcement on interest rates later today. The European and U.S. markets were down and the Asian markets figure to open in similar fashion.
The SCI finished modestly higher on Tuesday following gains from the financial shares, property stocks and the oil and insurance companies.
For the day, the index rose 11.33 points or 0.39 percent to finish at 2,952.34 after trading between 2,946.26 and 2,965.63. The Shenzhen Composite Index advanced 7.12 points or 0.45 percent to end at 1,582.07.
Among the actives, Industrial and Commercial Bank of China added 0.18 percent, while Bank of China collected 0.54 percent, China Construction Bank rose 0.41 percent, China Merchants Bank dipped 0.16 percent, China Life Insurance jumped 1.44 percent, Ping An Insurance gained 0.59 percent, China Petroleum and Chemical (Sinopec) was up 0.19 percent, China Shenhua Energy climbed 1.37 percent, Gemdale spiked 2.73 percent, Poly Developments and CITIC Securities both advanced 1.04 percent, China Vanke was up 0.40 percent and PetroChina was unchanged.
The lead from Wall Street is soft as stocks opened firmly in the red on Tuesday. They showed a modest recovery as the day progressed but still finished in negative territory.
The Dow shed 23.33 points or 0.09 percent to 27,198.02, while the NASDAQ lost 19.71 points or 0.24 percent to 8,273.61 and the S&P 500 fell 7.79 points or 0.26 percent to 3,013.18.
The weakness on Wall Street reflected concerns about U.S.-China trade talks after President Donald Trump lashed out at China on Twitter, suggesting that the Chinese are hoping to wait out the U.S. presidential election to get a better deal.
Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today. The Fed is expected to cut interest rates by at least 25 basis points in a proactive move to offset the negative effects of the U.S.-China trade war.
Crude oil futures rose sharply on Tuesday, as traders awaited the Federal Reserve's monetary policy statement and weekly crude inventory data. West Texas Intermediate crude oil futures for September ended up $1.18 or 2.1 percent at $58.05 a barrel.
Closer to home, China will see July manufacturing, non-manufacturing and composite PMIs later this morning. The manufacturing PMI is expected to show a score of 49.6, up from 49.4 in June. The non-manufacturing PMI is called at 54.0, down from 54.2. The composite is called steady at 53.0.
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