China’s stock market could recover to 3,300 points
(RTTNews) – China’s stock market has finished higher on two of three trading days since ending a three-day losing streak in which it fell nearly 55 points or 1.7%. The Shanghai Composite Index is now just above the 3,280 plateau and is expected to open again in the green on Friday.
The global forecast for Asian markets is bullish on optimism about the outlook for interest rates. European markets were mostly higher and US stock markets were solidly in the green and Asian markets should follow the latter lead.
The SCI ended slightly higher on Thursday after gains from oil companies, weak financials and mixed performance from properties and resource companies.
For the day, the index rose 6.82 points or 0.21% to end at 3,282.58 after trading between 3,277.11 and 3,305.71. The Shenzhen Composite Index added 8.70 points or 0.40% to end at 2,203.24.
Among assets, Bank of China lost 0.65%, while China Merchants Bank fell 0.75%, Bank of Communications fell 0.22%, China Life Insurance collected 0.43%, Jiangxi Copper climbed 1.25%, Aluminum Corp of China (Chalco) rose 0.87%, Yankuang Energy rebounded 2.38%, PetroChina rose 0.77%, China Petroleum and Chemical (Sinopec) rose gained 0.49%, Huaneng Power jumped 2.51%, China Shenhua Energy fell 0.31%, Gemdale plunged 2.85%, Poly Developments fell 1.39%, China Vanke lost 0.62%. %, China Fortune Land gained 1.00%, Beijing Capital gained 0.89% and Industrial and Commercial Bank of China and China Construction Bank were unchanged.
Wall Street’s lead is firm as leading averages shook off early weakness on Thursday, quickly moving into positive territory and accelerating towards the close.
The Dow Jones jumped 332.04 points or 1.03% to end at 32,529.63, while the NASDAQ climbed 130.17 points or 1.08% to end at 12,162.59 and the S&P 500 improved 48.82 points or 1.21% to close at 4,072.43.
Wall Street’s early weakness followed the release of a Commerce Department report showing a continued contraction in US economic activity in the second quarter of 2022, pushing the US into a technical recession.
However, economists doubt the economy is truly in recession, citing other indicators pointing to continued growth and persistent labor market strength.
The data may have further added to optimism that the Federal Reserve will slow the pace of its interest rate hikes in future meetings, helping Wall Street recover.
Crude oil futures stabilized on Thursday as worries about the outlook for energy demand due to slowing global economic growth weighed on prices. West Texas Intermediate crude oil futures for September ended down $0.84 or 0.9% at $96.42 a barrel.
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