(RTTNews) – The China stock market on Wednesday snapped the two-day winning streak in which it had risen almost 25 points or 0.8 percent. The Shanghai Composite Index now sits just beneath the 3,300-point plateau although it’s likely to bounce higher again on Thursday.
The global forecast for the Asian markets is broadly positive on easing concerns over the U.S. Federal Reserve’s independence. The European and U.S. markets were firmly higher and the Asian markets are tipped to follow that lead.
The SCI finished barely lower on Wednesday following losses from the financial shares, oil companies and property stocks.
For the day, the index dipped 3.40 points or 0.10 percent to finish at 3,296.36 after trading between 3,293.06 and 3,312.19. The Shenzhen Composite Index added 14.65 points or 0.77 percent to end at 1,923.38.
Among the actives, Industrial and Commercial Bank of China sank 0.56 percent, while Bank of China dipped 0.35 percent, Agricultural Bank of China slipped 0.36 percent, China Merchants Bank was down 0.05 percent, Bank of Communications lost 0.66 percent, China Life Insurance fell 0.22 percent, Jiangxi Copper declined 1.49 percent, Aluminum Corp of China (Chalco) added 0.62 percent, Yankuang Energy shed 0.48 percent, PetroChina dipped 0.12 percent, China Petroleum and Chemical (Sinopec) eased 0.18 percent, Huaneng Power rose 0.28 percent, China Shenhua Energy strengthened 1.29 percent, Gemdale dropped 0.81 percent, Poly Developments tumbled 1.89 percent and China Vanke retreated 1.53 percent.
The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday; they came off the day’s highs but still finished solidly in the green.
The Dow soared 419.59 points or 1.07 percent to finish at 39,606.57, while the NASDAQ rallied 407.63 points or 2.50 percent to close at 16,708.05 and the S&P 500 jumped 88.10 points or 1.67 percent to end at 5,375.86.
Stocks surged early after President Donald Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell. Trump’s attacks on Powell had led to anxiety on Wall Street about the Fed’s independence.
The president also suggested he’s willing to take a less confrontational approach to trade talks with China, predicting the current 145 percent tariff on Chinese imports will “come down substantially.”
Buying interest waned over the course of the session, however, as traders continue to express concerns about recent volatility in the markets triggered largely by Trump’s words.
Crude oil prices moved sharply lower on Wednesday after reports suggested that OPEC may accelerate oil output hikes in June for a second consecutive month. West Texas Intermediate crude for June delivery tumbled $1.52 or 2.4 percent to $62.15 a barrel.
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