RTTNews - The China stock market has finished lower now in back-to-back sessions, surrendering more than 40 points or 1.4 percent in that time. The Shanghai Composite Index is maintaining support at 3,080 points, although investors are looking for the market to reclaim the 3,100-point plateau by the opening of trade on Tuesday.
The global forecast for the Asian markets is optimistic, with many of the regional bourses poised for a recovery after being mired in lengthy and costly losing streaks. Financials are tipped to be a source of strength, although the gains could be slightly limited by continued weakness from the oil companies. The European and U.S. markets ended sharply higher as earnings season continues, and the Asian markets are also predicted to put on significant gains.
The SCI finished sharply lower on Monday, dragged to the downside by weakness among the financials and the commodities. For the day, the index shed 33.37 points or 1.1 percent to close at 3080.56 after trading between 3,076.30 and 3,112.88. The Shenzhen Index rose 0.4 percent to finish at 1,047.07.
Among the actives, Citic Securities fell 3.6 percent, while China Merchants Bank shed 2.7 percent, Jiangxi Copper lost 3.9 percent, Yunnan Copper gave away 3.4 percent and China Eastern Airlines added 5 percent.
The lead from Wall Street is broadly positive as stocks rallied amid some positive analyst comments on the financial sector after showing a lack of direction in early trading on Monday. The major averages finished in positive territory by substantial margins, staging their strongest performance of the month.
Financial stocks led the way higher on the heels of positive comments from influential analyst Meredith Whitney, who raised her rating on Goldman Sachs (GS) to Buy from Neutral. Whitney also said Bank of America (BAC) could provide value for investors.
On the earnings front, railroad operator CSX Corp. (CSX) is reported second quarter earnings after the close of trading, reporting earnings of $0.78 per share compared to $0.93 per share last year. Excluding the impact of discontinued operations, the company earned $0.72 per share.
Meanwhile, Novellus Systems (NVLS) reported an adjusted second-quarter loss of $39.3 million or $0.41 per share versus net income of $6.2 million or $0.06 per share in the year ago quarter. Wall Street analysts expected the company to report a loss of $0.38 per share for the quarter.
The major averages saw some further upside going into the close, ending the session at their best levels of the day. The Dow closed up by 185.16 points or 2.3 percent at 8,331.68, the NASDAQ moved up by 37.18 points or 2.1 percent to 1,793.21 and the S&P 500 rose by 21.92 points or 2.5 percent to 901.05.
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