China Stock Market May Add To Its Winnings

(RTTNews) - The China stock market on Monday snapped the two-day losing streak in which it had slumped more than 40 points or 1.3 percent. The Shanghai Composite Index now rests just above the 3,140-point plateau and it's expected to open in the green again on Tuesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates and support from technology stocks. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The SCI finished modestly higher on Monday as gains from the resource stocks were capped by weakness from the financial shares and properties.

For the day, the index advanced 26.06 points or 0.84 percent to finish at 3,142.78 after trading between 3,113.82 and 3,155.10. The Shenzhen Composite Index climbed 17.37 points or 0.90 percent to end at 1,952.91.

Among the actives, Bank of China collected 0.27 percent, while China Construction Bank fell 0.33 percent, China Merchants Bank sank 0.78 percent, China Life Insurance shed 0.35 percent, Jiangxi Coppoer rallied 1.58 percent, Aluminum Corporation of China (Chalco) strengthened 1.37 percent, Yankuang Energy improved 0.73 percent, Huaneng Power skidded 1.08 percent, China Petroleum & Chemical added 0.48 percent, PetroChina advanced 0.87 percent, China Shenhua Energy climbed 1.19 percent, Gemdale retreated 1.22 percent, Poly Developments slumped 1.65 percent, China Vanke declined 1.51 percent and Bank of Communications and Industrial and Commercial Bank of China were unchanged.

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

The Dow advanced 87.13 points or 0.25 percent to finish at 34,663.72, while the NASDAQ spiked 156.37 points or 1.14 percent to close at 13,917.89 and the S&P 500 gained 29.97 points or 0.67 percent to end at 4,487.46.

The tech-heavy NASDAQ received a boost from a surge by shares of Tesla (TSLA), with the electric car maker spiking by 10.1 percent after Morgan Stanley upgraded its rating on the company's stock to Overweight from Equal-Weight.

The overall strength on Wall Street partly reflected easing concerns about the outlook for interest rates after reports suggested a shift in Federal Reserve officials' stance on rates.

CME Group's FedWatch Tool is currently indicating a 93.0 chance the Fed will leave interest rates unchanged next week. The outlook for November is a little more uncertain, however, with the FedWatch Tool indicating a 54.5 percent chance rates will remain unchanged and a 42.6 percent chance of another quarter point rate hike.

Crude oil prices fell on Monday, retreating from last week's 10-month highs on concerns about the outlook for energy demand from China. West Texas Intermediate Crude oil futures for October ended lower by $0.22 or 0.3 percent at $87.29 a barrel.