Higher Open Called For China Stock Market

(RTTNews) - The China stock market rebounded on Tuesday, one session after ending the three-day winning streak in which it had climbed more than 35 points or 1.2 percent. The Shanghai Composite Index now rests just beneath the 3,235-point plateau and it's looking at a green light again on Wednesday.

The global forecast for the Asian markets is upbeat on growing optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished slightly higher on Tuesday as gains from the financials and properties were offset by weakness from the resource companies.

For the day, the index perked 4.84 points or 0.15 percent to finish at 3,233.67 after trading between 3,215.50 and 3,235.09. The Shenzhen Composite Index added12.61 points or 0.62 percent to end at 2,033.79.

Among the actives, Industrial and Commercial Bank of China collected 0.60 percent, while Bank of China added 0.50 percent, China Construction Bank gained 0.46 percent, Bank of Communications improved 0.68 percent, China Life Insurance advanced 0.98 percent, Jiangxi Copper shed 0.47 percent, Aluminum Corp of China (Chalco) retreated 1.25 percent, Yankuang Energy skidded 1.05 percent, PetroChina tanked 2.19 percent, China Petroleum and Chemical (Sinopec) sank 0.76 percent, Huaneng Power tumbled 1.68 percent, China Shenhua Energy lost 0.70 percent, Gemdale perked 0.26 percent, Poly Developments climbed 0.97 percent, China Vanke rose 0.34 percent, China Fortune Land declined 0.85 percent and China Merchants Bank was unchanged.

The lead from Wall Street is solid as the major averages opened higher on Tuesday and remained firmly in the green throughout the session.

The Dow jumped 145.79 points or 0.43 percent to finish at 34,212.12. while the NASDAQ rallied 111.40 points or 0.83 percent to end at 13,573.32 and the S&P 500 gained 30.08 points or 0.69 percent to close at 4,369.01.

The continued strength on Wall Street came following the release of the Labor Department's highly anticipated report on consumer price inflation in the month of May, which showed prices edged slightly higher.

The data added to optimism about the Federal Reserve pausing its recent interest rate increases when the central bank announces its monetary policy decision later today.

Crude oil prices rose sharply on Tuesday after the People's Bank of China announced a surprise rate cut, and the dollar weakened after data showing a slowdown in U.S. inflation raised expectations the Fed will pause rate increases. West Texas Intermediate Crude oil futures for July ended higher by $2.30 or 3.4 percent at $69.42 a barrel.