Win Streak May Continue For China Stock Market

(RTTNews) - The China stock market has moved higher in two straight sessions, collecting almost 25 points or 0.8 percent along the way. The Shanghai Composite Index now sits just beneath the 3,300-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is positive on optimism that the U.S. and China may scale back their tariff talk. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly higher on Tuesday following gains from the oil companies and mixed performances from the financial shares and properties.

For the day, the index added 8.32 points or 0.25 percent to finish at 3,299.76 after trading between 3,288.33 and 3,311.15. The Shenzhen Composite Index slipped 2.02 points or 0.11 percent to end at 1,908.73.

Among the actives, Industrial and Commercial Bank of China strengthened 1.42 percent, while Bank of China jumped 1.78 percent, Agricultural Bank of China spiked 2.42 percent, China Merchants Bank shed 0.64 percent, Bank of Communications improved 0.80 percent, China Life Insurance collected 0.66 percent, Jiangxi Copper rallied 1.56 percent, Aluminum Corp of China (Chalco) sank 0.92 percent, Yankuang Energy dropped 0.80 percent, PetroChina advanced 0.88 percent, China Petroleum and Chemical (Sinopec) added 0.53 percent, Huaneng Power retreated 1.53 percent, China Shenhua Energy lot 0.72 percent, Gemdale accelerated 1.81 percent, Poly Developments fell 0.55 percent and China Vanke was unchanged.

The lead from Wall Street is upbeat as the major averages opened higher and improved as the day progressed, ending near session highs.

The Dow surged 1,016.57 points or 2.66 percent to finish at 39,186.98, while the NASDAQ rallied 429.52 points or 2.71 percent to close at 16,300.42 and the S&P 500 jumped 129.56 points or 2.51 percent to end at 5,287.76.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop on Monday, amid lingering trade war concerns and President Donald Trump's continued attacks on Federal Reserve Chair Jerome Powell.

Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.

The markets also benefitted from positive earnings news from the likes of 3M (MMM) and aircraft engine supplier GE Aerospace (GE), which both beat the street.

Crude oil moved sharply higher on Tuesday after the Treasury Department announced new sanctions against Iran. West Texas Intermediate crude for May delivery surged $1.23 or 2.0 percent to $64.31 a barrel.