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China Shares May Tick Higher

(RTTNews) - The China stock market has finished higher now in two of four sessions since the end of the five-day winning streak in which it had gathered nearly 150 points or 4.2 percent en route to a fresh 14-week closing high. The Shanghai Composite Index finished just above the 3,290-point plateau, and now analysts are forecasting continued movement to the upside when the market opens for business on Thursday.

The global forecast for the Asian markets is positive, thanks to another surge from commodity prices - especially gold, which has hit another fresh record high and is now eying $1,200 per ounce. Steel, retail and telecom stocks also are expected to provide support. The European and U.S. markets ended modestly higher, and the Asian bourses are similarly tipped to trend to the upside.

The SCI finished sharply higher on Wednesday, recovering much of what it had lost in the 3.45 percent plunge a day earlier. The commodities were the big gainers, while the financials also provided support.

For the day, the index surged 66.64 points or 2.1 percent to finish at 3,290.17 after trading between 3,188.02 and 3,291.17. The Shenzhen Index was up 39.16 points or 3.3 percent to end at 1,214.24.

Among the gainers, Shandong Gold surged by the 10 percent daily limit, while Zijin Mining Group climbed 6.5 percent, Baoshan Iron and Steel jumped 8.51 percent, Bank of China added 0.71 percent and Haitong Securities gained 3.4 percent.

The lead from Wall Street is cautiously optimistic as stocks moved modestly higher over the course of the trading session on Wednesday. While buying interest remained somewhat subdued, the major averages managed to end the day firmly in positive territory.

The strength in the markets came as traders reacted to some upbeat economic data, including a report from the Labor Department showing that weekly jobless claims fell below the 500,000 level for the first time since early January. The report showed that jobless claims in the week ended November 21 fell to 466,000 from the previous week's revised figure of 501,000. Economists had been expecting jobless claims to edge down to 500,000 from the 505,000 originally reported for the previous week.

Additionally, a report from the Commerce Department showed that new home sales increased by much more than expected in the month of October, with the report also showing an increase in sales compared to the same month a year ago. New home sales rose 6.2 percent to an annual rate of 430,000 in October from the revised September rate of 405,000. Economists had expected sales to edge up to 404,000 from the 402,000 originally reported for the previous month.

While the Commerce Department released a separate report showing that durable goods orders unexpectedly decreased in the month of October, the report also showed a notable upward revision to pace of order growth in September.

In corporate news, shares of Tiffany & Co. (TIF) turned in a strong performance after the jewelry retailer reported third quarter earnings that were flat year-over-year at $0.35 per share, coming in well above analyst estimates of $0.24 per share. Tiffany also raised its earnings guidance for the full year, saying it now expects to report earnings of $1.88 to $1.98 per share compared to its previous forecast for earnings of $1.65 to $1.75 per share. Analysts had been expecting the company to earn $1.76 per share.

Meanwhile, shares of Microsoft (MSFT) closed moderately lower after the software giant said it has appointed Peter Klein as its new chief financial officer to replace Chris Liddell, who informed the company of his intention to resign his position to pursue other opportunities.

While stocks showed a strong move to the upside in morning trading, they were unable to sustain the upward move. Traders appeared reluctant to continue buying stocks ahead of the Thanksgiving Day holiday.

The major averages moved roughly sideways in late day trading, ending the session modestly higher. The Dow closed up 30.69 points or 0.3 percent at 10,464.40, the NASDAQ rose 6.87 points or 0.3 percent to 2,176.05 and the S&P 500 advanced 4.98 points or 0.5 percent to 1,110.63.

In economic news, China's State Administration of Foreign Exchange issued new rules Wednesday on individuals' transfers of foreign currency into yuan. According to the new rules, a foreigner or overseas institution is not allowed to send foreign currencies to five or more Chinese individuals to convert it into the yuan on a single day or on consecutive days.

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