China Bourse May Reclaim 3,300-Point Level

(RTTNews) - The China stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day losing streak in which it had slipped almost 50 points or 0.8 percent. The Shanghai Composite Index now rests just above the 3,280-point plateau and it may add to its winnings on Tuesday. The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets finished firmly higher and the Asian bourses are expected to open in similar fashion. The SCI finished modestly higher on Monday following gains from the resource stocks, weakness from the properties and a mixed picture from the financial sector. For the day, the index advanced 23.49 points or 0.72 percent to finish at 3,284.16 after trading between 3,252.63 and 3,285.09. The Shenzhen Composite Index climbed 25.82 points or 1.19 percent to end at 2,190.54. Among the actives, Industrial and Commercial Bank of China shed 0.46 percent, while Bank of China lost 0.62 percent, China Construction Bank fell 0.36 percent, China Merchants Bank fell 0.36 percent, Bank of Communications shed 0.41 percent, China Life Insurance climbed 1.08 percent, Jiangxi Copper advanced 1.01 percent, Aluminum Corp of China (Chalco) improved 0.95 percent, Yankuang Energy dropped 0.96 percent, PetroChina perked 0.19 percent, China Petroleum and Chemical (Sinopec) dipped 0.22 percent, Huaneng Power plunged3.94 percent, China Shenhua Energy sank 0.97 percent, Gemdale strengthened 1.03 percent, Poly Developments retreated 1.33 percent, China Vanke eased 0.06 percent, China Fortune Land declined 1.10 percent, Beijing Capital Development was down 0.37 percent and China Minsheng Bank was unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Monday and accelerated as the day progressed, ending near session highs. The Dow jumped 376.66 points or 1.11 percent to finish at 34,245.93, while the NASDAQ spiked 173.67 points or 1.48 percent and the S&P 500 rallied 46.83 points or 1.14 percent to end at 4,137.29.

The strength on Wall Street came as some traders looked to pick up stocks at reduced levels after last week's weakness, which reflected ongoing concerns about the outlook for interest rates.

Trading remained subdued, however, as traders look ahead to Tuesday's closely watched report on consumer price inflation. The inflation data could have a significant impact on the outlook for interest rates amid recent speculation the Federal Reserve may raise rates higher than anticipated.

Crude oil prices slumped on Monday afternoon, unable to held early gains. West Texas Intermediate was down $0.43 or 0.54 percent to $79.29 per barrel, coming off a high of $80.62 earlier in the day.