Rally May Stall For China Stock Market

(RTTNews) - The China stock market has moved higher in back-to-back sessions, collecting almost 70 points or 1.9 percent in that span. The Shanghai Composite Index now sits just beneath the 3,880-point plateau although it may spin its wheels on Thursday.

The global forecast for the Asian markets is soft, thanks to profit taking and weakness among the technology stocks. The European and U.S. markets were mixed to lower and the Asian bourses are likely to follow a similar path.

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

For the day, the index vaulted 56.15 points or 1.47 percent to finish at 3,878.43 after trading between 3,815.12 and 3,884.40. The Shenzhen Composite Index expanded 51.45 points or 2.07 percent to end at 2,537.55.

The lead from Wall Street is uninspired as the major averages opened higher on Wednesday but quickly headed south and finished mostly in the red on profit taking.

The Dow gained 263.24 points or 0.49 percent to finish at 54,349.12, while the NASDAQ tumbled 221.55 points or 0.83 percent to end at 26,363.44 and the S&P 500 sank 12.97 points or 0.17 percent to close at 7,723.55.

The downturn by the markets reflected concerns about AI spending after SpaceX (SPCX) reported its first quarterly results as a public company, revealing an unwelcome spike in capital spending.

In U.S. economic news, payroll processor ADP said private sector employment increased by less than expected in the month of July.

Crude oil prices were down for a third straight day on Wednesday on continued optimism for the reopening of Strait of Hormuz. West Texas Intermediate crude for September delivery was down $0.49 or 0.65 percent at $75.28 per barrel.