Higher Open Called For China Stock Market

(RTTNews) - The China stock market has finished higher in two of three trading days since the end of the four-day losing streak in which it had lost more than 60 points or 1.5 percent. The Shanghai Composite Index now sits just above the 4,115-point plateau and it may tick higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic and fairly fluid in light of U.S. demands to acquire Greenland. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow that lead.

The SCI finished slightly higher on Wednesday as gains from the resource stocks were offset by weakness from the financial sector.

For the day, the index perked 3.29 points or 0.08 percent to finish at 4,116.94 after trading between 4,103.53 and 4,135.96. The Shenzhen Composite Index gained 17.10 points or 0.64 percent to end at 2,694.89.

Among the actives, Industrial and Commercial Bank of China plunged 2.52 percent, while Bank of China surrendered 2.02 percent, Agricultural Bank of China tanked 2.93 percent, China Merchants Bank slumped 1.27 percent, China Life Insurance lost 0.77 percent, Jiangxi Copper rallied 2.12 percent, Aluminum Corp of China (Chalco) expanded 0.83 percent, Yankuang Energy skidded 1.07 percent, PetroChina improved 0.81 percent, China Petroleum and Chemical (Sinopec) sank 0.83 percent, Huaneng Power retreated 1.33 percent, China Shenhua Energy tumbled 1.88 percent, Gemdale advanced 0.95 percent, Poly Developments shed 0.46 percent and China Vanke soared 4.59 percent.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and stayed in the green throughout the session, although not without volatility.

The Dow jumped 588.64 points or 1.21 percent to finish at 49,077.23, while the NASDAQ rallied 270.50 points or 1.18 percent to end at 23,224.82 and the S&P 500 climbed 87.76 points or 1.16 percent to close at 6,875.62.

The volatility on Wall Street came as traders reacted to President Donald Trump's latest remarks about his efforts to take control of Greenland.

Early buying interest was generated in reaction to Trump's speech at the World Economic Forum in Davos, Switzerland, where he ruled out the use of military force to take control of Greenland.

However, buying interest waned over the course of the morning amid lingering concerns about trade between the U.S. and Europe due to the dispute. But buying interest returned when Trump said he would not go forward with the tariffs he threatened to impose on several European nations

Crude oil posted incremental gains on Wednesday as traders assessed Trump's speech at the World Economic Forum, where he sought negotiations on the U.S. bid to acquire Greenland. West Texas Intermediate crude for March delivery was up $0.10 or 0.17 percent at $60.46 per barrel.