China Stock Market May Extend Its Gains On Thursday

(RTTNews) - The China stock market has finished higher in two straight sessions, advancing almost 30 points or 0.9 percent along the way. The Shanghai Composite Index now sits just above the 3,375-point plateau and it may tick higher again on Thursday.

The global forecast for the Asian markets is slightly positive on a slightly improved outlook for interest rates. The European markets were slightly higher and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The SCI finished modestly higher on Wednesday following properties, oil companies and resource stocks, while the financial sector was mixed.

For the day, the index gained 14.23 points or 0.42 percent to finish at 3,376.20 after trading between 3,363.39 and 3,379.64. The Shenzhen Composite Index improved 18.22 points or 0.92 percent to end at 1,999.61.

Among the actives, Industrial and Commercial Bank of China sank 0.42 percent, while Bank of China lost 0.36 percent, China Merchants Bank rose 0.20 percent, Bank of Communications eased 0.13 percent, China Life Insurance collected 0.49 percent, Jiangxi Copper spiked 2.80 percent, Yankuang Energy increased 0.78 percent, PetroChina climbed 1.08 percent, China Petroleum and Chemical (Sinopec) perked 0.17 percent, Huaneng Power dropped 0.96 percent, China Shenhua Energy rose 0.31 percent, Gemdale strengthened 1.34 percent, Poly Developments improved 0.74 percent, China Vanke added 0.61 percent and Aluminum Corp of China (Chalco) and Agricultural Bank of China were unchanged.

The lead from Wall Street is uninspired as the major averages opened higher on Wednesday but gave back almost off of their gains to finish mixed and flat.

The Dow dropped 91.90 points or 0.22 percent to finish at 42,427.74, while the NASDAQ gained 61.53 points or 0.32 percent to close at 19,460.49 and the S&P 500 perked 0.44 points or 0.01 percent to end at 5,970.81.

The lackluster performance followed the release of some weaker than expected U.S. economic data. While the data raised concerns about the strength of the economy, it also generated some optimism about the outlook for interest rates.

In economic news, payroll processor ADP reported much weaker than expected private sector job growth in May. Also, the Institute for Supply Management said service sector activity in the U.S. unexpectedly contracted in May.

However, the Fed is still widely expected to leave interest rates unchanged at its next meeting later this month, with CME Group's FedWatch Tool currently indicating a 95.6 percent chance the central bank will leave rates unchanged.

Crude oil futures moved to the downside during trading on Wednesday, reflecting easing supply concerns as rains slowed the growth of blazes that had disrupted Canadian crude production. West Texas Intermediate crude for July delivery fell $0.56 or 0 .9 percent to $62.85 a barrel.

Closer to home, China will see May results for the services PMI from Caixin later this morning; in April, the index score was 50.7.