China Bourse May Reclaim 2,900-Point Level

(RTTNews) - The China stock market moved lower again on Wednesday, one day after ending the three-day slide in which it had stumbled more than 80 points or 2.7 percent. The Shanghai Composite Index now rests just above the 2,875-point plateau although it figures to move back to the upside again on Thursday.

The global forecast for the Asian markets is cautiously ahead of key U.S. inflation data later this week, which will affect the outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The SCI finished modestly lower on Wednesday following losses from the financials, properties and resource stocks.

For the day, the index sank 15.55 points or 0.54 percent to finish at 2,877.70 after trading between 2,870.42 and 2,903.16. The Shenzhen Composite Index dropped 13.29 points or 0.76 percent to end at 1,732.74.

Among the actives, Industrial and Commercial Bank of China shed 0.61 percent, Bank of China retreated 1.46 percent, China Construction Bank stumbled 1.20 percent, China Merchants Bank lost 0.43 percent, Bank of Communications sank 0.68 percent, China Life Insurance tanked 2.12 percent, Jiangxi Copper weakened 1.41 percent, Aluminum Corp of China (Chalco) slid 0.54 percent, Yankuang Energy tumbled 1.99 percent, PetroChina fell 0.67 percent, China Petroleum and Chemical (Sinopec) declined 1.43 percent, Huaneng Power added 0.35 percent, China Shenhua Energy was down 0.59 percent, Gemdale rose 0.24 percent, Poly Developments dropped 0.55 percent and China Vanke slumped 1.42 percent.

The lead from Wall Street is positive as the major averages opened slightly higher on Wednesday and accelerated throughout the session.

The Dow jumped 170.57 points or 0.45 percent to finish at 37,695.73, while the NASDAQ rallied 111.94 points or 0.75 percent to end at 14,969.65 and the S&P 500 gained 26.95 points or 0.57 percent to close at 4,783.45.

The strength on Wall Street may have reflected optimism ahead of the release of key U.S. inflation data in the comings days.

The Labor Department's reports on consumer and producer price inflation, which are due to be released on Thursday and Friday, respectively, could have a significant impact on the outlook for interest rates.

With economists expecting the reports to show slowdowns in the annual rate of core price growth, the data could bolster optimism about near-term rate cuts by the Federal Reserve.

Crude oil prices dropped on Wednesday after data showed an unexpected increase in U.S. crude inventories. West Texas Intermediate Crude oil futures for February delivery ended down $0.87 at $71.37 a barrel.