(RTTNews) - The China stock market on Wednesday snapped the four-day winning streak in which it had soared almost 90 points or 3 percent. The Shanghai Composite Index now rests just beneath the 3,040-point plateau although it may bounce higher again on Thursday.
The global forecast for the Asian markets suggests mild upside on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow suit.
The SCI finished slightly lower on Wednesday following losses from the financial shares, oil companies and property stocks.
For the day, the index sank 7.86 points or 0.26 percent to finish at 3,039.93 after trading between 3,034.35 and 3,060.56. The Shenzhen Composite Index rose 3.75 points or 0.22 percent to end at 1,722.05.
Among the actives, Industrial and Commercial Bank of China tanked 2.01 percent, while Bank of China skidded 1.09 percent, China Construction Bank slumped 1.12 percent, China Merchants Bank dropped 0.96 percent, Bank of Communications retreated 1.25 percent, China Life Insurance declined 1.21 percent, Jiangxi Copper advanced 0.97 percent, Aluminum Corp of China (Chalco) rose 0.32 percent, Yankuang Energy improved 0.78 percent, PetroChina sank 0.77 percent, China Petroleum and Chemical (Sinopec) eased 0.16 percent, China Shenhua Energy and Huaneng Power both fell 0.33 percent, Gemdale stumbled 1.24 percent, Poly Developments plunged 1.92 percent and China Vanke lost 1.58 percent.
The lead from Wall Street is positive as the major averages opened higher on Wednesday, faded midday but rallied late to finish modestly in the green.
The Dow added 75.86 points or 0.20 percent to finish at 38,661.05, while the NASDAQ advanced 91.96 points or 0.58 percent to close at 16,031.54 and the S&P 500 rose 26.11 points or 0.51 percent to end at 5,104.76.
The rebound on Wall Street reflected a positive reaction to congressional testimony by Federal Reserve Chair Jerome Powell.
Powell told the House Financial Services Committee it will likely be appropriate for the Fed to begin lowering interest rates at "some point this year," although he reiterated officials need "greater confidence" inflation is moving sustainably toward 2 percent.
In economic news, payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in February.
Crude oil futures settled higher on Wednesday after data showed large declines in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures for April ended higher by $0.98 or 1.25 percent at $79.13 a barrel.
Closer to home, China will release February figures for imports, exports and trade balance later this morning. Imports are expected to rise 2.0 percent on year after adding 0.2 percent in January. Exports are called higher by an annual 2.5 percent, up from 2.3 percent in the previous month. The trade surplus is pegged at $110.30 billion, up from $75.34 billion a month earlier.
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