China Stock Market Predicted To Open In The Green

(RTTNews) - The China stock market on Tuesday ended the two-day slide in which it had dipped just 5 points or 0.2 percent. The Shanghai Composite Index remains just above the 3,275-point plateau and it's expected to open slightly higher again on Wednesday.

The global forecast for the Asian markets suggests mild upside, with gains likely limited by profit taking from the oil and technology sectors. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SCI finished slightly higher on Tuesday as strong gains from the properties were offset by losses from the financials and resource stocks.

For the day, the index perked 1.80 points or 0.05 percent to finish at 3,277.88 after trading between 3,271.57 and 3,295.02. The Shenzhen Composite Index gathered 9.60 points or 0.43 percent to end at 2,227.04.

Among the actives, Industrial and Commercial Bank of China shed 0.23 percent, while China Construction Bank dipped 0.18 percent, China Merchants Bank collected 0.53 percent, China Life Insurance retreated 1.51 percent, Jiangxi Copper shed 0.64 percent, Aluminum Corp of China (Chalco) dropped 0.87 percent, Yankuang Energy tanked 2.17 percent, PetroChina sank 0.96 percent, China Petroleum and Chemical (Sinopec) lost 0.46 percent, Huaneng Power spiked 1.98 percent, China Shenhua Energy eased 0.10 percent, Gemdale skyrocketed 5.89 percent, Poly Developments added 0.58 percent, China Vanke improved 1.47 percent, China Fortune Land rallied 1.71 percent and Bank of China and Bank of Communications were unchanged.

The lead from Wall Street is mixed as the major averages opened on opposite sides of the unchanged line, rallied mid-day but still finished the same way.

The Dow jumped 239.57 points or 0.71 percent to finish at 34,152.01, while the NASDAQ fell 25.50 points or 0.19 percent to close at 13,102.55 and the S&P 500 rose 8.06 points or 0.19 percent to end at 4,305.20.

The continued advance by the Dow was partly due to strong gains by Walmart (WMT) and Home Depot (HD) after both companies reported better than expected second quarter results.

Buying interest may also have been generated in reaction to a report from the Federal Reserve showing U.S. industrial production increased more than expected in July.

Traders largely shrugged off a Commerce Department report showing new residential construction tumbled by much more than expected last month.

Oil prices fell sharply Tuesday on worries about the outlook for energy demand and on a potential increase in supply from OPEC. West Texas Intermediate Crude oil futures for September sank $2.88 or 3.2 percent at $86.53 a barrel.