China Shares Tipped To Open To The Upside On Friday

(RTTNews) - The China stock market has tracked higher in two straight sessions, rising almost 70 points or 2 percent in that span. The Shanghai Composite Index now sits just above the 3,875-point plateau although it may see additional support on Friday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The SCI finished sharply higher on Thursday following gains from the financial shares and resource stocks, while the property sector was soft.

For the day, the index jumped 63.09 points or 1.65 percent to finish at 3,875.31 after trading between 3,796.43 and 3,875.31. The Shenzhen Composite Index surged 61.13 points or 2.54 percent to end at 2,468.66.

Among the actives, Industrial and Commercial Bank of China increased 0.54 percent, while Bank of China perked 0.18 percent, Agricultural Bank of China was down 0.14 percent, China Merchants Bank gained 0.70 percent, Bank of Communications advanced 0.97 percent, China Life Insurance collected 0.51 percent, Jiangxi Copper jumped 1.40 percent, Aluminum Corp of China (Chalco) rallied 3.03 percent, Yankuang Energy improved 0.38 percent, PetroChina slipped 0.34 percent, China Petroleum and Chemical (Sinopec) added 0.36 percent, Huaneng Power lost 0.65 percent, China Shenhua Energy rose 0.29 percent, Gemdale shed 0.48 percent, Poly Developments eased 0.13 percent and China Vanke fell 0.44 percent.

The lead from Wall Street is positive as the major averages opened higher on Thursday and remained in the green throughout the trading day.

The Dow surged 617.08 points or 1.36 percent to finish at 46,108.00, while the NASDAQ rallied 157.01 points or 0.72 percent to end at 22,043.07 and the S&P 500 gained 55.43 points or 0.85 percent to close at 6,587.47.

The strength on Wall Street came amid a positive reaction to separate Labor Department reports on consumer price inflation and weekly jobless claims, further boosting the chances of a rate cut.

A closely watched Labor Department report showed U.S. consumer prices rose by slightly more than expected in August. Also, first-time claims for U.S. unemployment benefits unexpectedly increased last week.

Following the reports, CME Group's FedWatch Tool is currently indicating 94.8 percent chance the Federal Reserve will lower rates by a quarter-point next week and a slim 5.2 percent chance of a half- point rate cut.

Crude oil prices fell sharply on Thursday, triggered by the International Energy Agency's monthly report that boosted the supply estimate for 2025 and 2026, indicating a glut. West Texas Intermediate crude for October delivery sank $1.22 or 1.92 percent at $62.45 per barrel.