Market Commentary and Intraday News
Firm Start Predicted For China Bourse
221 days ago
(RTTNews) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had spiked more than 45 points or 2.2 percent. The Shanghai Composite Index remained just below the 2,100-point plateau, and now investors are looking for a positive bounce when the market opens on Wednesday.
The global forecast for the Asian markets is broadly upbeat thanks to solid earnings news and optimism that Spain may finally apply for a bailout. The markets should respond favorably to news that financial giant Goldman Sachs (GS) beat forecasts, as did Coca-Cola (KO) and Johnson & Johnson (JNJ). In addition, reports are circulating that the Spanish government is prepared to officially request a bailout, providing a measure of clarity for the region. The European and U.S. markets were sharply higher on Tuesday and the Asian bourses are expected to open in similar fashion.
The SCI finished flat on Tuesday as weakness from the industrials and automobile producers capped the broader market's upside.
For the day, the index added 0.11 points or 0.01 percent to finish at 2,098.81 after trading between 2,089.69 and 2,111.78.The Shenzhen Composite Index gained 0.3 percent to end at 862.14.
Among the actives, Beijing Tongrentang climbed 1.7 percent and Wuliangye Yibin jumped 1.1 percent, while Baoshan Iron and Steel shed 2.2 percent, Dongfeng Automobile fell 0.4 percent and ZTE dropped 4.2 percent.
The lead from Wall Street remains positive as stocks were higher on Tuesday with traders reacting positively to the latest batch of earnings news. The markets extended Monday's upward move, continuing to recover from last week's weakness.
The rally followed quarterly results from some big-name companies, including financial giant Goldman Sachs (GS), which reported adjusted third quarter earnings of $2.85 per share compared to a year-ago loss of $0.84 per share, while analysts had expected earnings of $2.12 per share.
Beverage giant Coca-Cola (KO) also saw Q3 earnings that beat estimates but missed on revenues. Johnson & Johnson (JNJ) reported third quarter earnings and sales that exceeded estimates and also raised its full-year guidance.
Traders also reacted to news that health insurer UnitedHealth (UNH) raised its full-year guidance and that online retailer Amazon (AMZN) is hiring for more than 50,000 seasonal positions this holiday season.
Shares of Citigroup (C) were also in focus after the financial giant announced that Vikram Pandit has stepped down as the company's Chief Executive Officer and as a member of the Board. Citigroup's board unanimously elected Michael Corbat as CEO and a director of the Board. Corbat previously served as Citigroup's CEO of Europe, Middle East and Africa.
Separate reports showing a rebound by industrial production and a continued increase in homebuilder confidence also helped to push stocks higher. The Labor Department also released a report showing that consumer prices rose by slightly more than expected in September due to a jump in energy prices.
The major U.S. averages were firmly higher again on Tuesday as the Dow jumped 127.55 points or 1 percent to finish at 13,551.78, while the NASDAQ surged 36.99 points or 1.2 percent to end at 3,101.17 and the S&P 500 advanced 14.79 points or 1 percent to end at 1,454.92.
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