FX.co ★ China Stock Market Tipped To Bounce Higher Again On Thursday

The stock market in China saw losses on Wednesday, this followed the ending of a three-day losing streak which had seen a downward shift of over 50 points or 1.7 percent. Currently, the Shanghai Composite Index is just above the 2,990-point mark but is predicted to recover on Thursday.

Future predictions for the Asian market remain positive, fueled by ongoing optimism for the future of interest rates. Both European and U.S. markets experienced gains, and it is expected that Asian markets will do the same.

A sharp decrease happened on Wednesday in the SCI, influenced mostly by losses in the resource and property sectors. However, these losses were partially balanced by support from the financial sector.

For that day, the index declined by 38.34 points or 1.26 percent, closing at the day's lowest point of 2,993.14 after having reached as high as 3,030.45. The Shenzhen Composite Index slipped by 49.04 points or 2.80 percent, ending at 1,703.25.

Several significant activities took place. The Industrial and Commercial Bank of China increased by 0.56 percent, and the Bank of China saw gains of 1.13 percent. The China Construction Bank rose by 0.14 percent. On the other hand, China Merchants Bank declined by 0.31 percent. The Bank of Communications saw an increase of 1.26 percent. The China Life Insurance reduced by 1.78 percent, Jiangxi Copper by 1.21 percent, and Aluminum Corp of China (Chalco) slipped by 1.11 percent. PetroChina reduced by 0.43 percent but China Petroleum and Chemical (Sinopec) saw an increase of 0.32 percent. Huaneng Power dropped by 1.08 percent, China Shenhua Energy increased by 2.13 percent, while Gemdale, Poly Developments, and China Vanke saw significant decreases.

In contrast, Wall Street opened strong on Wednesday, maintaining this trend throughout the session. The Dow experienced a leap of 477.75 points or 1.22 percent, closing at 39,760.08, while the NASDAQ rallied by 83.82 points or 0.51 percent, closing at 16,399.52. Similarly, the S&P 500 gained 44.91 points or 0.86 percent, ending the day at 5,248.49.

Wednesday's Wall Street strength was due to traders capitalizing on the previous day's weak performance by purchasing stocks at lower prices.

Treasury yields also saw a decrease, further strengthening the market. This boost of optimism regarding interest rates is a result of last week's monetary policy announcement from the Federal Reserve. Although the Fed did not change interest rates as anticipated, they did maintain their prediction of three rate cuts for the year.

Oil prices fell on Wednesday following an unexpected increase in U.S. oil and gasoline stocks from the prior week. West Texas Intermediate Crude oil futures for May closed lower by $0.27, 0.33 percent, at $81.35 a barrel.

Finally, the markets will be closed in observance of Good Friday.