(RTTNews) – The China stock market on Tuesday ended the four-day losing streak in which it had dropped more than 65 points or 3.3 percent. The Shanghai Composite Index now rests just above the 2,930-point plateau and it’s tipped to open in the green on Wednesday.
The global forecast for the Asian markets is broadly positive on optimism for a quicker than expected economic recovery following the Covid-19 shutdown. The European and U.S. markets were firmly higher and the Asian bourses are tipped to open in similar fashion.
The SCI finished sharply higher on Tuesday following gains from the financial shares, property stocks and oil and insurance companies.
For the day, the index spiked 41.72 points or 1.44 percent to finish at 2,931.75 after trading between 2,909.13 and 2,931.77. The Shenzhen Composite Index advanced 33.00 points or 1.77 percent to end at 1,898.35.
The lead from Wall Street is upbeat as stocks opened higher on Tuesday and remained in the green throughout the session, extending Monday’s gains.
The Dow surged 526.82 points or 2.04 percent to finish at 26,289.98, while the NASDAQ jumped 169.84 points or 1.75 percent to end at 9,895.87 and the S&P 500 spiked 58.15 points or 1.90 percent to close at 3,124.74.
The continued strength on Wall Street followed a report from the Commerce Department showing retail sales rebounded much more than expected in May as stores began to reopen following the coronavirus lockdown.
Positive sentiment was also generated by reports indicating the Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of an effort to support the economy following the coronavirus pandemic.
Crude oil prices surged higher Tuesday, buoyed by an upward revision in the oil demand forecast for the year by the International Energy Agency. West Texas Intermediate Crude oil futures for July rose $1.26 or 3.4 percent at $38.38 a barrel.