China Stock Market Figures To Remain Rangebound

(RTTNews) – The China stock market has moved higher in two of three trading days since the end of the four-day losing streak in which it had stumbled more than 60 points or 1.8 percent. The Shanghai Composite Index now sits just beneath the 3,350-point plateau and it’s expected to turn lower again on Thursday.

The global forecast for the Asian markets is soft, with optimism for a Covid-19 vaccine giving way to concerns about the surging virus. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The SCI finished modestly higher on Wednesday as gains from the financials, properties and resource stocks were capped by weakness from the oil companies.

For the day, the index rose 7.41 points or 0.22 percent to finish at 3,347.30 after trading between 3,333.99 and 3,358.89. The Shenzhen Composite Index fell 7.74 points or 0.34 percent to end at 2,261.59.

Among the actives, Industrial and Commercial Bank of China collected 0.60 percent, while Bank of China added 0.31 percent, China Construction Bank climbed 1.39 percent, China Merchants Bank rallied 2.08 percent, Bank of Communications gained 0.65 percent, China Life Insurance soared 3.38 percent, Ping An Insurance gathered 1.59 percent, PetroChina shed 0.47 percent, China Petroleum and Chemical (Sinopec) dipped 0.24 percent, Baoshan Iron sank 0.79 percent, Jiangxi Copper accelerated 1.92 percent, Aluminum Corporation of China (Chalco) surged 3.28 percent, Yanzhou Coal perked 1.23 percent, Gemdale jumped 1.61 percent, Poly Developments advanced 1.03 percent, China Vanke spiked 2.70 percent and Beijing Capital Development rose 0.31 percent.

The lead from Wall Street is negative as stocks opened higher on Wednesday but fell into the red as the day progressed and ended firmly under water.

The Dow dropped 344.93 points or 1.16 percent to finish at 29,438.42, while the NASDAQ sank 97.74 points or 0.82 percent to end at 11,801.60 and the S&P 500 lost 41.74 points or 1.16 percent to close at 3,567.79.

The late-day sell-off on Wall Street came amid renewed concerns about new restrictions and lockdowns as a result of the recent surge in coronavirus cases after data showed there were nearly 162,000 new cases and 1,707 deaths on Tuesday.

Concerns about the economic impact of the lockdowns overshadowed upbeat news regarding the coronavirus vaccine candidate being developed by Pfizer (PFE) and BioNTech (BNTX). The companies plan to submit a request to the FDA for an Emergency Use Authorization for the vaccine “within days.”

Crude oil prices moved higher on Wednesday amid expectations that OPEC will extend its current production cuts further into 2021. West Texas Intermediate Crude oil futures for December were up $0.39 or 0.9 percent to settle at $41.82 a barrel.

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