(RTTNews) – The Chinese stock market advanced in two consecutive sessions, rallying more than 70 points or 2% along the way. The Shanghai Composite Index now sits just below the 3,530 point plateau and is called up again on Wednesday.
Global forecasts for Asian markets are cautiously optimistic, largely supported by crude oil prices. European markets were up and US stock markets were mixed and Asian markets were counting to divide the difference.
The SCI ended sharply higher on Tuesday following gains in financial stocks and mixed performance in real estate and resource stocks.
For the day, the index gained 35.30 points or 1.01% to close at 3,529.93 after trading between 3,477.06 and 3,529.93. The Shenzhen Composite Index climbed 20.96 points or 0.85% to end at 2,483.79.
Among assets, Industrial and Commercial Bank of China rose 0.22%, while China Construction Bank rose 1.57%, China Merchants Bank rose 2.34%, Bank of Communications collected 0.69 %, China Life Insurance rose 0.88%, Jiangxi Copper sank 0.74%, Aluminum Corp of China (Chalco) fell 0.35%, Yanzhou Coal plunged 4.51%, PetroChina a rose 0.22%, China Shenhua Energy rose 0.63%, Gemdale added 0.70%, Poly Developments rose 0.52%, China Vanke fell 1.89% and Beijing Capital Development, Bank of China and China Petroleum and Chemical (Sinopec) remained unchanged.
Wall Street’s lead is inconsistent again as major averages opened higher on Tuesday; the Dow Jones and the S&P stayed that way and finished at new highs, while the NASDAQ quickly collapsed and spent the rest of the day in the red.
The Dow Jones jumped 162.82 points or 0.46% to close at 35,264.67, while the NASDAQ lost 72.09 points or 0.49% to close at 14,788.09 and the S&P rose 4.40 points or 0.10% to finish at 4,436.75.
The advances of the Dow Jones and S&P 500 reflected optimism following news that the Senate approved a $ 1,000 billion infrastructure bill. The package is now heading to the House, where it faces an uncertain future.
Buying interest was subdued, however, as traders eagerly awaited the release of a Labor Department report on consumer price inflation in July later today.
Inflation data could have an impact on the outlook for monetary policy. Concerns that the Fed could start cutting back on asset purchases earlier than currently expected could have weighed on high-growth tech stocks.
Crude oil futures stabilized sharply higher on Tuesday, recovering from recent losses as data showing increased fuel demand in India in July pushed prices higher. West Texas Intermediate crude oil futures for September ended $ 1.81 or 2.7% at $ 68.29 a barrel.
Closer to home, China will see July data for new yuan loans later today, with forecasts suggesting a total of CNY 1.2 trillion, up from CNY 2120 billion in June.
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