RTTNews - The winning streak has stretched to four sessions now for the China stock market, which has added more than 220 points or 5.8 percent along the way. The Shanghai Composite Index closed above support at 3,470 points at a fresh 15-month high, and now investors are expecting little movement when the market kicks off trade on Wednesday.
The global forecast for the Asian bourses offers little guidance with a flat opening likely in the cards. Financials and properties are expected to extend gains, but they'll likely be countered by profit taking among the oil, steel and retail stocks. The European markets finished modestly in negative territory, while the U.S. markets ended slightly positive - and the Asian markets are also expected to hover around the unchanged line.
The SCI finished slightly higher on Tuesday, as gains among the commodities were wiped out by losses among the financials and airlines.
For the day, the index eased 8.85 points or 0.1 percent to close at 3,471.44 after trading between 3,404.82 and 3,478.01 on turnover of 235.8 billion yuan. There were 498 gainers and 433 decliners.
Among the actives, China Shenhua Energy surged 6.3 percent, while Bank of China fell 1.9 percent, Hua Xia Bank shed 3.03 percent, China Vanke added 0.53 percent and Shanghai Airlines dropped 2.40 percent.
Wall Street offers a barely positive lead as stocks ended Tuesday's trading on a positive note amid some late session buying interest following a choppy session. The major averages all finished in positive territory by moderate margins, building on yesterday's strong gains that helped the NASDAQ and S&P 500 cross key levels.
On the economic front, the National Association of Realtors released a report showing that pending home sales growth in June exceeded economist estimates by a wide margin. With the increase, pending sales rose for the fifth consecutive month. NAR said its pending home sales index jumped 3.6 percent to 94.6 in June from an upwardly revised reading of 91.3 in May. Economists had been expecting a much more modest increase by the index of about 0.7 percent.
Earlier, the Commerce Department released a report showing that personal spending increased by slightly more than expected, while personal income fell by more than expected. The report showed that personal spending rose 0.4 percent in June following a revised 0.1 percent increase in May. Economists had been expecting spending to increase by 0.3 percent compared to the 0.3 percent increase originally reported for the previous month.
At the same time, the Commerce Department said that personal income fell by 1.3 percent in June after increasing by a revised 1.3 percent in the previous month. The decrease compares to economist estimates of a 1.0 percent decline. Subsequently, the report said that personal saving as a percentage of disposable personal income was 4.6 percent in June compared with 6.2 percent in May.
On the earnings front, Centex (CTX) was one of the few bright spots among a slew of disappointing results that included Pulte (PHM), D.R. Horton (DHI), Archer Daniels Midland (ADM) and Tenet Healthcare (THC), among others.
The major averages showed a notable upward move going into the close, climbing back above the unchanged line. The Dow closed up by 33.63 points or 0.4 percent at 9,320.19, the NASDAQ advanced by 2.70 points or 0.1 percent to 2,011.31 and the S&P 500 rose by 3.02 points or 0.3 percent to 1,005.65.
In economic news, Wang Yadong, an official of the Ministry of Human Resources and Social Security, said on Tuesday that employment situation remains grave even though the economy showed signs of recovery. In a press conference, he said the global financial crisis has not bottomed out yet. So the risk of unemployment is still high. He added that only 3 percent of migrant workers are searching for jobs. The unemployment rate remained stable at 4.3 percent in urban areas during the second quarter.
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