- June 10, 2021
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The China stock market bounced higher again on Wednesday, one day after snapping the two-day winning streak in which it had collected more than 15 points or 0.4 percent. The Shanghai Composite Index now sits just above the 3,590-point plateau although it’s likely to head south again on Thursday.
The global forecast for the Asian markets is slightly soft ahead of key U.S. inflation data later today. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.
The SCI finished modestly higher on Wednesday following gains from the resource stocks, weakness from the financials and a mixed picture from the properties.
For the day, the index added 11.29 points or 0.32 percent to finish at 3,591.40 after trading between 3,572.64 and 3,598.71. The Shenzhen Composite Index rose 3.42 points or 0.14 percent to end at 2,396.54.
Among the actives, Industrial and Commercial Bank of China fell 0.19 percent, while China Construction Bank lost 0.29 percent, China Merchants Bank and Bank of Communications both shed 0.41 percent, Minsheng Bank was down 0.43 percent, Jiangxi Copper climbed 1.33 percent, Aluminum Corp of China (Chalco) spiked 2.37 percent, Yanzhou Coal surged 6.78 percent, PetroChina soared 3.60 percent, China Petroleum and Chemical (Sinopec) rallied 2.22 percent, China Shenhua Energy jumped 1.63 percent, Gemdale eased 0.09 percent, Poly Developments perked 0.38 percent, China Vanke sank 0.58 percent, China Fortune Land rose 0.19 percent, Beijing Capital Development was up 0.35 percent and Bank of China and China Life Insurance were unchanged.
The lead from Wall Street suggests mild consolidation as stocks opened mixed on Wednesday, bounced back and forth across the unchanged line and eventually ended slightly lower.
The Dow dropped 152.68 points or 0.44 percent to finish at 34,447.14, while the NASDAQ dipped 13.16 points or 0.09 percent to end at 13,911.75 and the S&P 500 eased 7.71 points or 0.18 percent to close at 4,219.55.
The cautious trade on Wall Street reflected concerns over key inflation data that could prompt the Federal Reserve to begin discussions on tapering its asset buying program sooner than expected.
In economic news, the Commerce Department said wholesale inventories rose 0.8 percent on month to $ 698.0 billion in April after seeing a 1.2 percent increase in March.
Crude oil prices edged lower on Wednesday after data showed a jump in U.S. gasoline stockpiles last week. West Intermediate crude oil futures for July ended down $0.09 or 0.1 percent at $69.96 a barrel.
Closer to home, China will see May numbers for new yuan loans later today. New yuan loans are forecast to be worth CNY1410 billion, down from CNY1470 billion in April. The M2 money supply is called steady at 8.1 percent, while outstanding loan growth is expected to slow to 12.3 percent on year from 12.3 percent a month earlier.