Higher Open Called For China Stock Market

(RTTNews) - The China stock market has moved higher in three straight sessions, collecting more than 80 points or 2 percent along the way. The Shanghai Composite Index now sits just above the 4,160-point plateau and it's got a strong lead again for Thursday.

The global forecast for the Asian markets is positive on hopes for an end to hostilities in the Middle East. The European and U.S. markets were sharply higher and the Asian bourses are expected to follow that lead.

The SCI finished sharply higher on Wednesday following gains from the resource and property stocks, while the financials and oil companies were soft.

For the day, the index jumped 48.01 points or 1.17 percent to finish at 4,160.17 after trading between 4,129.91 and 4,166.15. The Shenzhen Composite Index soared 62.32 points or 2.24 percent to end at 2,838.55.

Among the actives, Industrial and Commercial Bank of China slumped 1.21 percent, while Bank of China collected 0.72 percent, Agricultural Bank of China dropped 0.87 percent, China Merchants Bank sank 0.71 percent, Bank of Communications skidded 1.03 percent, China Life Insurance eased 0.03 percent, Jiangxi Copper vaulted 3.23 percent, Aluminum Corp of China (Chalco) surged 4.21 percent, Yankuang Energy perked 0.18 percent, PetroChina tumbled 2.70 percent, China Petroleum and Chemical (Sinopec) fell 0.37 percent, Huaneng Power spiked 2.29 percent, China Shenhua Energy shed 0.56 percent, Gemdale accelerated 2.41 percent, Poly Developments soared 4.23 percent and China Vanke rallied 2.56 percent.

The lead from Wall Street is strong as the major averages opened higher on Wednesday and continued to pick up steam as the day progressed, ending at session highs.

The Dow spiked 612.34 points or 1.24 percent to finish at 49,910.59, while the NASDAQ rallied 512.82 points or 2.02 percent to end at 25,838.94 and the S&P 500 jumped 105.90 points or 1.46 percent to close at 7,365.12.

The rally on Wall Street came amid optimism about an end to the conflict in the Middle East after reports said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding.

Adding to the optimism about a peace deal, President Donald Trump said the U.S. would pause its efforts to escort ships through the Strait of Hormuz to see whether or not the agreement can be finalized and signed.

On the U.S. economic front, payroll processor ADP released a report showing private sector employment in the U.S. jumped more than expected in April.

Crude oil prices went into freefall after Trump indicated the U.S. and Iran may reach a deal soon. West Texas Intermediate crude for June delivery was down $7.83 or 7.66 percent at $94.44 per barrel.