FX.co ★ Steady Start Eyed For China Stock Market

The Chinese stock market experienced a break from its three-day losing streak, regaining more than 50 points or 1.7 percent, leaving the Shanghai Composite Index a bit above the 3,040-point mark. The expectation is further upward momentum on Thursday.

While the global prediction for Asian markets indicates slight movement due to concerns about interest rates. The European and U.S. markets have experienced slightly low and mixed results respectively, with Asian markets forecasted to land somewhere in between.

On Wednesday, the SCI showed moderate increases, with gains from oil and other resource stocks balancing any losses from financial shares and properties. The index gained 22.84 points or 0.76 percent, ending at 3,044.82 after trading between 3,019.12 and 3,045.64. Furthermore, the Shenzhen Composite Index increased by 19.78 points or 1.18 percent, finishing at 1,694.82.

In terms of active shares, financial institutions such as the Industrial and Commercial Bank of China and Bank of China saw slight losses, while China Construction Bank saw a slightly larger drop. Meanwhile, China Merchants Bank profited, but Jiangxi Copper and Aluminum Corp of China experienced boosted values. Energy sectors, both Yankuang Energy and China Shenhua Energy faced decreases, while PetroChina, China Petroleum and Chemical saw increases. Real estate companies such as Gemdale, Poly Developments and China Vanke all experienced dips.

As for Wall Street, no particular trend has been identified. Mixed results were reported with Dow Jones average dropping by 0.11 percent, while both NASDAQ and S&P 500 showing marginal increases. Positive responses to corporate earnings kept Wall Street buoyant, with companies like Tesla, Texas Instruments, Visa and Mattel making notable contributions.

However, there's a sense of caution considering the upcoming Federal Reserve meeting and its implications on interest rates. While the Fed is likely to maintain current interest rates, traders will be on the lookout for any signs of possible future declines.

Lastly, the oil sector witnessed a decrease in price due to concerns about future demand and a somewhat relaxed political atmosphere in the Middle East. Consequently, the futures for West Texas Intermediate Crude oil for June went down by $0.55, concluding at $82.81 a barrel.