China Stock Market May Add To Its Winnings On Wednesday

(RTTNews) - The China stock market has moved higher in back-to-back sessions, advancing more than 35 points or 0.9 percent along the way. The Shanghai Composite Index now sits just above the 3,870-point plateau and it may see additional support on Wednesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly higher on Tuesday as gains from the financials and resource stocks were capped by weakness from the property sector.

For the day, the index gained 33.26 points or 0.87 percent to finish at 3,870.02 after trading between 3,845.14 and 3,882.03. The Shenzhen Composite Index rallied 33.97 points or 1.42 percent to end at 2,424.95.

Among the actives, Industrial and Commercial Bank of China collected 1.34 percent, while Bank of China strengthened 1.46 percent, Agricultural Bank of China added 0.62 percent, China Merchants Bank rallied 1.45 percent, Bank of Communications spiked 2.12 percent, China Life Insurance jumped 1.99 percent, Jiangxi Copper accelerated 2.67 percent, Aluminum Corp of China (Chalco) gained 0.57 percent, PetroChina perked 0.20 percent, China Petroleum and Chemical (Sinopec) shed 0.68 percent, Huaneng Power improved 0.78 percent, Gemdale rose 0.27 percent, Poly Developments fell 0.29 percent and China Vanke, Yankuang Energy and China Shenhua Energy were unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Tuesday but then trended to the upside throughout the session, ending near daily highs.

The Dow surged 664.18 points or 1.43 percent to finish at 47,112.45, while the NASDAQ added 153.59 points or 0.67 percent to end at 23,025.59 and the S&P 500 climbed 60.76 points or 0.91 percent to close at 6,765.88.

The strength that emerged on Wall Street reflected renewed optimism about the outlook for interest rates following recent dovish comments from Federal Reserve officials as well as the latest U.S. economic data.

The Commerce Department said retail sales in the U.S. increased less than expected in September, while the Conference Board also released a report showing a substantial deterioration by U.S. consumer confidence in November.

Payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

CME Group's FedWatch Tool indicates the chances the Fed will cut interest rates by another quarter point next month have surged to 82.7 percent from 50.1 percent a week ago.

Crude oil prices slumped on Tuesday on reports that a revised Russia-Ukraine peace plan has been accepted by Ukraine. West Texas Intermediate crude for January delivery was down $0.96 or 1.61 percent at $57.89 per barrel.