Higher Open Called For China Stock Market

(RTTNews) - The China stock market has alternated between positive and negative finishes through the last seven trading days since the end of the five-day losing streak in which it had surrendered almost 100 points or 2.8 percent. The Shanghai Composite Index now sits just above the 3,255-point plateau and it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is upbeat on easing concerns over the health of the financial sector. The European and U.S. markets were firmly higher and the Asian markets are expected to open in similar fashion.

The SCI finished modestly higher on Tuesday following mixed performances from the financials, properties and resource and energy companies.

For the day, the index added 20.74 points or 0.64 percent to finish at 3,255.65 after trading between 3,237.89 and 3,256.00. The Shenzhen Composite Index jumped 32.33 points or 1.57 percent to end at 2,085.98.

Among the actives, Industrial and Commercial Bank of China and China Construction Bank both retreated 1.33 percent, while Bank of China tanked 2.28 percent, China Merchants Bank collected 0.32 percent, Bank of Communications declined 1.54 percent, China Life Insurance dipped 0.26 percent, Jiangxi Copper strengthened 1.43 percent, Aluminum Corp of China (Chalco) fell 0.36 percent, Yankuang Energy lost 0.42 percent, PetroChina slumped 1.56 percent, China Petroleum and Chemical (Sinopec) stumbled 1.59 percent, Huaneng Power rose 0.35 percent, China Shenhua Energy skidded 1.04 percent, Gemdale eased 0.12 percent, Poly Developments dropped 1.12 percent, China Vanke was up 0.13 percent, China Fortune Land added 0.40 percent, Beijing Capital Development climbed 1.05 percent and China Minsheng Bank was unchanged.

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

The Dow surged 316.02 points or 0.98 percent to finish at 32,560.60, while the NASDAQ spiked 184.57 points or 1.58 percent to end at 11,860.11 and the S&P 500 climbed 51.30 points or 1.30 percent to end at 4,002.87.

The extended rally on Wall Street partly reflected easing concerns about turmoil in the financial sector following recent steps taken to rescue distressed banks in the U.S. and Europe.

Positive sentiment was also generated in reaction to remarks by Treasury Secretary Janet Yellen, who said the government is prepared to once again take action to protect bank depositors if smaller lenders are threatened.

Traders also looked ahead to the Federal Reserve's highly anticipated monetary policy announcement later today. While the recent banking turmoil led to some speculation the Fed may leave interest rates unchanged, CME Group's FedWatch Tool is currently indicating an 86.4 percent chance of a 25-basis point rate hike.

Crude oil prices climbed higher Tuesday, gaining for a second straight session amid improving risk sentiment thanks to the coordinated efforts by major central banks to rescue troubled U.S. and European lenders. West Texas Intermediate Crude oil futures for April ended higher by $1.69 or 2.5 percent at $69.33 a barrel.