China Stock Market May Add To Its Winnings On Tuesday

(RTTNews) - The China stock market returned to the upside from its Labor Day break, bouncing higher again after snapping the four-day winning streak in which it had gathered almost 100 points or 3 percent. The Shanghai Composite Index now sits just above the 3,140-point plateau and it may see continued support on Tuesday. The global forecast for the Asian markets is upbeat on renewed optimism over the outlook for interest rates. The European and U.S. markets were firmly higher and the Asian markets are predicted to open in similar fashion. The SCI finished sharply higher on Monday following gains from the insurance companies and mixed performances from the resource and property stocks. For the day, the index climbed 35.90 points or 1.16 percent to finish at 3,140.72 after trading between 3,126.77 and 3,142.38. The Shenzhen Composite Index rallied 36.33 points or 2.07 percent to end at 1,792.41. Among the actives, Industrial and Commercial Bank of China skidded 1.10 percent, while Bank of China tanked 2.40 percent, China Construction Bank and China Shenhua Energy both sank 0.70 percent, China Merchants Bank strengthened 1.66 percent, Bank of Communications retreated 1.31 percent, China Life Insurance accelerated 3.26 percent, Jiangxi Copper fell 0.34 percent, Aluminum Corp of China (Chalco) rose 0.40 percent, Yankuang Energy jumped 1.95 percent, PetroChina plunged 2.53 percent, China Petroleum and Chemical (Sinopec) shed 0.47 percent, Huaneng Power advanced 0.85 percent, Gemdale slumped 1.26 percent, Poly Developments dropped 0.90 percent, China Vanke gained 0.67 percent and China State Construction Engineering climbed 1.12 percent.

The lead from Wall Street is broadly positive as the major averages opened higher on Monday and remained firmly in the green throughout the trading day.

The Dow advanced 176.59 points or 0.46 percent to finish at 38,852.27, while the NASDAQ rallied 192.92 points or 1.19 percent to close at 16,349.25 and the S&P 500 improved 52.95 points or 1.03 percent to end at 5,180.74.

Stocks continued to benefit from the upward momentum seen over the two previous sessions, which partly reflected renewed optimism about the outlook for interest rates.

Relatively dovish comments from Federal Reserve Chair Jerome Powell combined with weaker-than-expected job growth in April have largely eliminated short-lived concerns the Fed might actually consider raising rates.

Investors have instead grown increasingly confident about a rate cut in the coming months, with the chances rates will be lower by September now at 83.5 percent, according to CME Group's FedWatch Tool.

Crude oil futures settled modestly higher on Monday following Saudi Arabia's decision to hike its selling price for the European and Asian markets. West Texas Intermediate Crude oil futures for June ended higher by $0.37 or 0.47 percent at $78.48 a barrel.