China Shares May Reverse Wednesday's Losses

(RTTNews) - The China stock market on Wednesday halted the two-day winning streak in which it had gathered more than 70 points or 2 percent. The Shanghai Composite Index settled just above the 3,635-point plateau, although the market may see a positive bounce on Thursday.

The global forecast for the Asian markets i9s broadly positive thanks to a sharp rebound in the price of crude oil - while window dressing ahead of the year's end also may play a role. The European and U.S. markets were firmly higher and the Asian markets figure to follow suit.

The SCI finished modestly lower on Wednesday as losses from the technology and resource stocks were mitigated by support from the financial sector.

For the day, the index slipped 15.68 points or 0.43 percent to finish at 3,636.09 after trading between 3,633.03 and 3,684.57. The Shenzhen index dipped 131.26 points or 1 percent to end at 13,007.87 for a combined turnover of 996.7 billion yuan.

Among the actives, Beijing Tongtech and Toyou Feiji Electronics both skidded by the 10 percent daily limit, while Jiangsu Xiuqiang Glasswork dropped 8.02 percent, Changzhou Almaden fell 5.08 percent, CITIC Securities surged 6.12 percent, China Citic Bank climbed 2.8 percent and China Construction Bank collected 0.34 percent.

The lead from Wall Street is firm as stocks moved higher on Wednesday, fueled by a gain in the energy sector. The gains extended a recent upward move, with the major averages closing higher for the third straight day.

The Dow jumped 185.34 points or 1.1 percent to 17,602.61, while the NASDAQ advanced 44.82 points or 0.9 percent to 5,045.93 and the S&P 500 surged 25.32 points or 1.2 percent to 2,064.29.

The strength followed a substantial increase by the price of crude oil, which climbed further off its recent lows after an unexpected sharp decline in inventories.

Traders were also reacting to a slew of U.S. economic data, including a report from the Commerce Department showing that new home sales increased for the second consecutive month in November. A separate report from the University of Michigan said that consumer sentiment improved by more than estimated in December.

Also, the Commerce Department noted that personal income and spending rose at the same rate in November, while a separate report showed that durable goods orders were virtually unchanged in November after surging 2.9 percent in October.