China Stock Market May Test Resistance At 3,300 Points

(RTTNews) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of 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 above the 3,250-point plateau and it's expected to open higher again on Friday.

The global forecast for the Asian markets is upbeat on an improved 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 higher on Thursday following gains from the financial shares and properties.

For the day, the index advanced 23.99 points or 0.74 percent to finish at the daily high of 3,252.98 after moving as low as 3,229.15. The Shenzhen Composite Index climbed 24.15 points or 1.18 percent to end at 2,062.95.

Among the actives, Industrial and Commercial Bank of China improved 0.82 percent, while Bank of China rose 0.25 percent, China Construction Bank collected 0.32 percent, China Merchants Bank advanced 0.99 percent, Bank of Communications climbed 0.86 percent, China Life Insurance shed 0.63 percent, Jiangxi Copper gathered 0.31 percent, Yankuang Energy strengthened 1.24 percent, PetroChina lost 0.53 percent, China Petroleum and Chemical (Sinopec) dropped 0.91 percent, Huaneng Power fell 0.34 percent, China Shenhua Energy eased 0.10 percent, Gemdale jumped 1.98 percent, Poly Developments gained 0.60 percent, China Vanke rallied 2.22 percent, China Fortune Land spiked 3.08 percent and Aluminum Corp of China (Chalco) was unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher and accelerated as the day progressed, ending near session highs.

The Dow surged 428.73 points or 1.26 percent to finish at 34,408.06, while the NASDAQ jumped 156.34 points or 1.15 percent to end at 15,826.35 and the S&P 500 climbed 53.25 points or 1.22 percent to close at 4,425.84.

The rally on Wall Street reflected optimism about the outlook for interest rates following the release of some U.S. economic data. While the Federal Reserve forecast further rate hikes, traders seem hopeful the central bank will not follow through.

The optimism stemmed from a report from the Labor Department showing initial jobless claims held at their highest level last week since October 2021. A separate Labor Department report said import prices in the U.S. fell more than expected in May, also generating optimism about the outlook for inflation.

Crude oil prices rose sharply Thursday, buoyed by reports suggesting a jump in demand from Chinese refineries and additional stimulus from the Chinese central bank. The dollar's weakness also contributed to the jumped in oil prices. West Texas Intermediate Crude oil futures ended higher by $2.35 or 3.4 percent at $70.62 a barrel.