China Shares Tipped To Open In The Green

(RTTNews) - The China stock market has moved lower in two of three trading days since the end of the two-day winning streak in which it had advanced more than 45 points or 1.1 percent. The Shanghai Composite Index now sits just above the 4,000-point plateau although it figures to move back to the upside on Wednesday.

The global forecast for the Asian markets is upbeat amid optimism about an end to the record-setting U.S. government shutdown. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SCI finished modestly lower on Tuesday as losses from the resource companies were offset by support from the financial and property sectors.

For the day, the index shed 15.84 points or 0.39 percent to finish at 4,002.76 after trading between 3,991.52 and 4,024.94. The Shenzhen Composite Index fell 11.86 points or 0.47 percent to end at 2,517.57.

Among the actives, Industrial and Commercial Bank of China improved 0.49 percent, while Bank of China gained 0.35 percent, Agricultural Bank of China rallied 2.22 percent, China Merchants Bank added 0.56 percent, Bank of Communications collected 0.27 percent, China Life Insurance slumped 1.62 percent, Jiangxi Copper stumbled 2.43 percent, Aluminum Corp of China (Chalco) increased 0.16 percent, Yankuang Energy plunged 3.62 percent, PetroChina skidded 1.01 percent, China Petroleum and Chemical (Sinopec) was up 0.18 percent, Huaneng Power dropped 0.97 percent, China Shenhua Energy retreated 1.59 percent, Gemdale added 0.51 percent, Poly Developments perked 0.28 percent and China Vanke rose 0.32 percent.

The lead from Wall Street is incongruous as the major averages opened mixed and ultimately finished the same way.

The Dow jumped 559.33 points or 1.18 percent to finish at 47,927.96, while the NASDAQ slumped 58.87 points or 0.25 percent to close at 23,468.30 and the S&P 500 rose 14.18 points or 0.21 percent to end at 6,846.61.

The mixed performance on Wall Street came as traders express some uncertainty about the near-term outlook for the markets - especially the possibility of a tech bubble - following recent volatility.

However, valuation concerns continue to hang over the markets, as traders had largely shrugged off worries about the economic impact of the shutdown.

A sharp increase by the price of crude oil has also contributed to considerable strength among energy stocks, which are moving higher along with biotechnology and healthcare stocks.

On the other hand, semiconductor stocks have come under pressure, dragging the Philadelphia Semiconductor Index down by 2.0 percent.

Closer to home, China will release October figures for new loans and money stock. New loans are expected to be worth CNY465.0 billion, down from CNY1.290 trillion, with loan growth expected to be steady at an annual 6.6 percent. The M2 money stock is tipped to rise 8.1 percent on year, easing from 8.4 percent in September.