China’s Equity Markets May Stall Midweek After Recent Gains

The China stock market has risen for three consecutive sessions, gaining nearly 120 points, or about 3.5%. The Shanghai Composite now rests just above the 3,285‑point level, though the advance could lose momentum on Wednesday.

Weakness in Asian markets is anticipated amid climbing U.S. Treasury yields, with European and U.S. indices edging lower, suggesting a similar trajectory for Asian exchanges.

The Shanghai Composite edged up on Tuesday, buoyed by energy‑sector gains, while financial and real‑estate stocks showed mixed performance.

On the day, the Shanghai Composite added 17.76 points (0.54%) to close at 3,285.87, trading in a range of 3,255.14 to 3,294.96. The Shenzhen Component Index rose 16.68 points (0.86%) to finish at 1,953.64.

In active trading, Industrial and Commercial Bank of China slipped 0.32%, Bank of China fell 0.20%, and China Construction Bank eased 0.12%. China Merchants Bank gained 0.82%, Agricultural Bank of China rose 0.41%, while China Life Insurance declined 0.14%. Jiangxi Copper edged up 0.09%, Aluminum Corp of China (Chalco) advanced 0.91%, Yankuang Energy increased 0.31%, Sinopec rose 0.76%, Huaneng Power jumped 4.42%, China Shenhua Energy added 0.29%, Gemdale surged 2.00%, Poly Developments climbed 1.86%, China Vanke rose 0.54%, and PetroChina finished flat.

Wall Street provided mixed signals, with major U.S. averages opening modestly lower on Tuesday and trading narrowly, though the NASDAQ managed to close slightly above the unchanged level.

The Dow Jones Industrial Average lost 6.71 points (0.02%) to close at 42,924.89, the NASDAQ gained 33.12 points (0.18%) to finish at 18,573.13, and the S&P 500 slipped 2.78 points (0.05%) to end at 5,851.20.

Early‑session weakness on Wall Street stemmed from renewed worries about interest‑rate prospects following a recent rise in U.S. Treasury yields.

Following the Federal Reserve’s 50‑basis‑point rate cut last month, the CME Group’s FedWatch Tool now shows an 89.6% probability of only a 25‑basis‑point reduction next month.

Despite the benchmark 10‑year Treasury yield climbing to a near‑three‑month high, markets later recovered as traders remained optimistic about the economic outlook.

Oil prices jumped on Tuesday as investors hoped China’s latest stimulus measures would boost demand, though gains were capped by prospects of a Middle‑East ceasefire. November WTI crude futures rose $1.53, or 2.1%, to settle at $72.09 per barrel.

Source link