Higher Open Anticipated For China Stock Market

(RTTNews) - The China stock market turned lower again on Wednesday, one day after snapping the three-day losing streak in which it had slumped almost 40 points or 1.3 percent. The Shanghai Composite Index now sits just above the 3,065-point plateau although it's likely to find renewed support again on Thursday.

The global forecast for the Asian markets is upbeat, with energy and technology stocks expected to lead the way, The European and U.S. markets were up and the Asian bourses figure to follow suit.

The SCI finished modestly lower on Wednesday following losses from the oil, property and mining companies, while the financial sector was mixed.

For the day, the index dropped 25.80 points or 0.83 percent to finish at 3,065.40 after trading between 3,064.74 and 3,092.35. The Shenzhen Composite Index skidded 20.59 points or 1.19 percent to end at 1,706.33.

Among the actives, Industrial and Commercial Bank of China dipped 0.18 percent, while Bank of China rose 0.23 percent, China Construction Bank perked 0.14 percent, China Merchants Bank retreated 1.59 percent, China Life Insurance collected 0.41 percent, Jiangxi Copper surrendered 2.61 percent, Aluminum Corp of China (Chalco) tanked 3.96 percent, Yankuang Energy fell 0.46 percent, PetroChina tumbled 2.20 percent, China Petroleum and Chemical (Sinopec) slumped 1.11 percent, Huaneng Power skidded 1.09 percent, China Shenhua Energy advanced 0.97 percent, Gemdale plummeted 5.50 percent, Poly Developments stumbled 2.18 percent, China Vanke plunged 2.99 percent and Bank of Communications was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday, faded a bit but bounced solidly higher and sent the NASDAQ and S&P to fresh record closing highs.

The Dow added 96.04 points or 0.25 percent to finish at 38,807.33, while the NASDAQ surged 330.86 points or 1.96 percent to close at 17,187.90 and the S&P 500 rallied 62.69 points or 1.18 percent to end at 5,354.03.

The surge by the NASDAQ came as tech stocks continued to take their cues from Nvidia (NVDA), as the AI darling soared by 5.2 percent to a new record closing high.

The strength on Wall Street also came as a report from payroll processor ADP showing private sector job growth in the U.S. slowed by more than expected in the month of May added to optimism about the outlook for interest rates.

Treasury yields moved lower following the release of the jobs data, with the ten-year yield falling to its lowest levels in two months.

Crude oil prices bounced higher from four-month lows after OPEC decided not to extend production cuts. West Texas Intermediate for July delivery was up $1.04 or 1.42 percent to $74.29 per barrel.