FX.co ★ Soft Start Seen For China Stock Market

The China stock market has experienced gains over the past two sessions, adding almost 35 points or 1 percent. The Shanghai Composite is now positioned just below the 3,370-point mark, though a downward trend is expected as trading begins on Thursday.

Globally, the forecast for Asian markets appears uncertain, with potential minor declines, especially in the oil and technology sectors. European markets closed slightly lower, while U.S. markets showed a mixed and largely flat performance, suggesting limited movement for Asian markets.

On Friday, the Shanghai Composite Index (SCI) modestly advanced due to positive traction from energy stocks and varied outcomes for financial, property, and resource stocks. The index closed up by 21.98 points or 0.66 percent, settling at 3,367.99, with trading fluctuations between 3,333.00 and 3,375.25. Meanwhile, the Shenzhen Composite Index surged by 27.80 points, or 1.38 percent, closing at 2,037.66.

Among active stocks, Industrial and Commercial Bank of China saw a 0.16 percent dip, Bank of China fell by 0.40 percent, China Merchants Bank decreased by 0.64 percent, Agricultural Bank of China rose by 0.42 percent, and China Life Insurance declined by 0.29 percent. Jiangxi Copper edged up by 0.14 percent, while Aluminum Corp of China (Chalco) dropped 0.38 percent, and Yankuang Energy lost 0.45 percent. China Petroleum and Chemical (Sinopec) improved by 0.79 percent, Huaneng Power grew by 0.84 percent, and China Shenhua Energy eased by 0.17 percent. Gemdale gained 0.19 percent, Poly Developments slipped by 0.29 percent, China Vanke increased by 0.11 percent, with China Construction Bank and PetroChina remaining unchanged.

U.S. market indicators provide little direction as major averages lingered in negative territory for most of Wednesday, before a late surge resulted in mixed outcomes with minimal changes. The Dow Jones Industrial Average rose by 139.53 points or 0.32 percent, reaching 43,408.47; the NASDAQ decreased by 21.33 points or 0.11 percent to 18,966.14; and the S&P 500 inched up by 0.13 points, effectively unchanged, to 5,917.11.

The late market rally was spurred by optimism surrounding the anticipated earnings report from tech giant Nvidia (NVDA). Despite the report releasing post-market and meeting solid expectations, it didn't quite match the high market hopes. The session's volatility also partly stemmed from low trading activity amid the lack of new major U.S. economic data. Investors seemed hesitant to make significant moves, keeping a close watch on international developments, particularly the increasing tensions between Ukraine and Russia.

Oil prices declined on Wednesday owing to weak demand concerns and reports of an increase in U.S. crude inventories from the previous week. West Texas Intermediate crude futures for December saw a decrease of $0.52, or 0.75 percent, settling at $68.87 a barrel.