October 1, 2020

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China Stock Market May Extend Its Gains On Tuesday

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The China stock market has climbed higher in two straight sessions, gathering more than 40 points or 1.3 percent along the way. The Shanghai Composite Index now sits just beneath the 3,280-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is mixed to higher, with strength from the technology stocks likely capped by weakness from the oil companies. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to split the difference.

The SCI finished modestly higher on Monday following gains from the energy producers, weakness from the properties and a mixed picture from the financial sector.

For the day, the index collected 18.47 points or 0.57 percent to finish at 3,278.81 after trading between 3,261.15 and 3,283.53. The Shenzhen Composite Index climbed 24.88 points or 1.15 percent to end at 2,189.10.

Among the actives, Industrial and Commercial Bank of China, Bank of China collected 0.31 percent, China Construction Bank shed 0.33 percent, China Merchants Bank added 0.30 percent, Bank of Communications rose 0.22 percent, China Life Insurance skidded 1.10 percent, Ping An Insurance spiked 1.74 percent, PetroChina gained 0.47 percent, China Petroleum and Chemical (Sinopec) increased 0.26 percent, China Shenhua Energy advanced 0.44 percent, Gemdale sank 0.88 percent, Poly Developments eased 0.18 percent and China Vanke dropped 1.07 percent.

The lead from Wall Street is broadly positive as stocks showed a strong move to the upside on Monday, regaining some ground after taking heavy damage last week.

The Dow spiked 327.69 points or 1.18 percent to finish at 27,993.33, while the NASDAQ jumped 203.11 points or 1.25 percent to end at 11,056.65 and the S&P 500 gained 42.57 points or 1.27 percent to close at 3,383.54.

The rally on Wall Street partly reflected a rebound by technology stocks, which recovered after leading the markets lower last week. Apple (AAPL) has been a key driver of the markets in recent sessions and advanced by 3 percent after ending the previous session at its lowest closing level in a month.

Positive sentiment was also generated in reaction to news that AstraZeneca (AZN) has resumed a late-stage clinical trial of its coronavirus vaccine.

Crude oil futures settled lower Monday, extending recent losses amid rising concerns about outlook for energy demand after OPEC lowered its oil demand forecast. West Texas Intermediate Crude oil futures for October ended down $0.07 or 0.2 percent at $37.26 a barrel.

Closer to home, China will release August figures for industrial production, retail sales, fixed asset investment and unemployment later this morning.

Industrial production is tipped to rise 5.1 percent on year, up from 4.8 percent in July. Retail sales are expected to add an annual 0.1 percent after slipping 1.1 percent in the previous month. FAI is expected to sink 0.4 percent on year after losing 1.6 percent a month earlier. The jobless rate in July was 5.7 percent.

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2020-09-14 21:02:35


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