China Stock Market Likely To See Profit Taking On Wednesday

(RTTNews) - The China stock market had tracked higher in 10 straight sessions, surging more than 780 points or 27.9 percent in that span. The Shanghai Composite now sits just beneath the 3,490-point plateau although it's overdue for consolidation on Wednesday.

The global forecast for the Asian markets suggests mild upside, fueled by support from the technology companies. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The SCI finished with huge gains again on Tuesday following gains from the insurance and oil companies, while the financial and resource sectors were mixed.

For the day, the index surged 153.28 points or 4.59 percent to finish at 3,489.78 after trading between 3,372.19 and 3,674.40.

Among the actives, China Life Insurance skyrocketed by the 10 percent daily limit, while Ping An Insurance surged 8.13 percent, Industrial and Commercial Bank of China dropped 0.97 percent, Bank of China shed 0.60 percent, China Construction Bank climbed 1.01 percent, China Merchants Bank spiked 6.36 percent, Agricultural Bank of China sank 0.83 percent, Jiangxi Copper advanced 2.21 percent, Aluminum Corp of China (Chalco) stumbled 2.13 percent, Yankuang Energy lost 0.66 percent, PetroChina accelerated 3.55 percent, China Petroleum and Chemical (Sinopec) improved 0.86 percent, Huaneng Power strengthened 2.98 percent, China Shenhua Energy plunged 2.66 percent, Gemdale jumped 3.84 percent, Poly Developments fell 0.36 percent and China Vanke soared 6.79 percent.

The lead from Wall Street is positive as the major averages opened mixed but quickly moved up into positive territory and stayed that way.

The Dow jumped 126.13 points or 0.30 percent to finish at 42,080.37, while the NASDAQ rallied 259.01 points or 1.45 percent to end at 18,182.92 and the S&P 500 advanced 55.19 points or 0.97 percent to close at 5,751.13.

The strength on Wall Street came as traders went shopping for bargains, especially among the technology companies.

In economic news, the U.S. trade deficit narrowed to $70.4 billion in August 2024, the lowest in five months, from an upwardly revised $78.9 billion in July. Exports increased 2 percent to a record high of $271.8 billion, while imports dropped 0.9 percent to $342.2 billion.

Data on U.S. consumer price and producer price inflation are due later in the week.

Oil prices tumbled Tuesday as supply disruptions concerns eased a bit on reports Israel is unlikely to attack Iranian oil facilities. West Texas Intermediate Crude oil futures for November sank $3.57 or 4.63 percent at $73.57 a barrel.