- November 20, 2020
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The China stock market has moved higher in two straight sessions, collecting almost 25 points or 0.6 percent along the way. The Shanghai Composite Index now sits just beneath the 3,365-point plateau and it’s expected to open higher again on Friday.
The global forecast for the Asian markets is cautiously optimistic, with technology stocks expected to push markets into the green. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The SCI finished modestly higher on Thursday following gains from the insurance companies and mixed performances from the financials, properties and oil companies.
For the day, the index gained 15.78 points or 0.47 percent to finish at 3,363.09 after trading between 3,330.45 and 3,367.33. The Shenzhen Composite Index gathered 14.26 points or 0.63 percent to end at 2,275.85.
Among the actives, Industrial and Commercial Bank of China rose 0.20 percent, while China Construction Bank climbed 1.22 percent, China Merchants Bank collected 0.27 percent, Bank of Communications dipped 0.22 percent, China Life Insurance advanced 0.91 percent, Ping An Insurance was up 0.06 percent, PetroChina shed 0.47 percent, China Petroleum and Chemical (Sinopec) gained 0.24 percent, Baoshan Iron fell 0.32 percent, Jiangxi Copper tanked 2.17 percent, Aluminum Corp of China (Chalco) tumbled 2.31 percent, Gemdale shed 0.40 percent, Poly Developments jumped 1.55 percent, China Vanke added 0.49 percent, Beijing Capital Development sank 0.62 percent and Bank of China and China Minsheng Bank were unchanged.
The lead from Wall Street suggests mild upside as stocks opened lower on Thursday but picked up ground as the day progressed and finally ended in positive territory.
The Dow added 44.81 points or 0.15 percent to finish at 29,483.23, while the NASDAQ jumped 103.11 points or 0.87 percent to end at 11,904.71 and the S&P 500 rose 14.08 points or 0.39 percent to close at 3,581.87.
The gains by the NASDAQ reflected expectations that new lockdowns as a result of the recent spike in coronavirus cases will benefit technology companies, as was seen earlier in the pandemic. Data showed 170,161 new coronavirus cases in the U.S. on Wednesday, while daily deaths hit 1,848.
The recent surge in coronavirus cases has led several states to impose new restrictions and lockdowns, possibly leading more Americans to again relying on tech as they work from home.
The markets also got a boost from comments from Senate Minority Leader Chuck Schumer, D-N.Y., saying Senate Majority Leader Mitch McConnell, R-Ken., has agreed to resume negotiations over a new stimulus bill.
In economic news, the Labor Department said jobless claims unexpectedly spiked last week, while the National Association of Realtors said existing home sales jumped more than expected,
Crude oil futures ended lower on Thursday as rising coronavirus cases in the U.S. and Europe and fresh lockdown measures raised concerns for energy demand. West Texas Intermediate Crude oil futures for December ended down $0.08 or 0.2 percent at $41.74 a barrel.
Closer to home, China will announce November loan prime rates for one year and five years later today; in October, they were at 3.85 percent and 4.65 percent, respectively.