(RTTNews) – The China stock market has finished higher in two of three trading days since the end of the three-day slide in which it had fallen almost 75 points or 2.1 percent. The Shanghai Composite Index now sits just beneath the 3,370-point plateau and it’s direction likely will be determined by data to be released shortly after the market opens.
The global forecast for the Asian markets is murky, with Covid-19 surging even as treatment vaccines start to roll out. The European and U.S. markets were mixed to lower and the Asian markets figure to follow suit.
The SCI finished modestly higher on Monday following gains from the properties, weakness from the resource stocks and a mixed picture from the financial sector.
For the day, the index gained 21.93 points or 0.66 percent to finish at 3,369.12 after trading between 3,338.63 and 3,371.13. The Shenzhen Composite Index climbed 23.75 points or 1.07 percent to end at 2,247.69.
Among the actives, Industrial and Commercial Bank of China shed 0.59 percent, while Bank of China lost 0.31 percent, China Construction Bank collected 0.62 percent, China Merchants Bank soared 3.96 percent, Bank of Communications fell 0.44 percent, China Minsheng Bank added 0.58 percent, China Life Insurance tumbled 1.91 percent, Jiangxi Copper retreated 1.61 percent, Aluminum Corp of China (Chalco) dropped 0.81 percent, Yanzhou Coal plunged 4.58 percent, PetroChina sank 0.71 percent, China Petroleum and Chemical (Sinopec) skidded 1.46 percent, China Shenhua Energy plummeted 6.33 percent, Gemdale rallied 2.03 percent, Poly Developments climbed 1.44 percent and China Vanke jumped 1.62 percent.
The lead from Wall Street is uninspired as stocks opened higher on Monday, although the Dow and the S&P were unable to hold their gains and ended in the red.
The Dow shed 184.82 points or 0.62 percent to finish at 29,861.55, while the NASDAQ gained 62.17 points or 0.50 percent to end at 12,440.04 and the S&P 500 fell 15.97 points or 0.44 percent to close at 3,647.49.
The pullback by stocks came on concerns about the impact of new lockdown measures as the coronavirus death toll in the U.S. reached 300,000. New York Governor Andrew Cuomo and New York City Mayor Bill de Blasio have both warned that the city could be headed for another “full shutdown” unless the second wave of coronavirus infections is contained.
The warnings about a new round of shutdowns come despite the approval of the coronavirus vaccine developed by Pfizer (PFE) and BioNTech (BNTX). The CDC signed off on the vaccine following the Emergency Use Authorization issued by the FDA. Pfizer has commenced the first shipments of the vaccine to distribution centers across the country.
Crude oil prices climbed Monday amid hopes the rollout of a Covid-19 vaccine will help revive the economy and result in increased energy demand. West Texas Intermediate Crude oil futures for January ended higher by $0.42 or 0.9 percent at $46.99 a barrel, a nine-month closing high.
Closer to home, China will see November numbers for industrial production, retail sales, fixed asset investment and unemployment. In October, industrial production was up 6.9 percent on year, while retail sales were up 4.3 percent, fixed asset investment gained 1.8 percent and the jobless rate was at 5.3 percent.