The China stock market has enjoyed two consecutive sessions of gains, adding over 40 points and lifting the Shanghai Composite to just above the 3,320-point level. On Monday, the index rose by 22.50 points, or 0.68 percent, to reach 3,322.20 after fluctuating between a low of 3,279.72 and its daily high. The Shenzhen Composite Index also performed well, gaining 27.93 points, or 1.41 percent, to finish at 2,002.58. Investors are hopeful that the upward trend will continue as optimism spills over from European and U.S. markets, bolstered by a significant dip in oil prices.
Key players in China’s market showed mixed results. Property and resource stocks delivered gains, while some financial and energy stocks faced slight losses. Industrial and Commercial Bank of China saw a small drop of 0.82 percent, with Bank of China declining by 0.61 percent and China Construction Bank falling 1.23 percent. Similarly, China Merchants Bank decreased by 1.48 percent, and Agricultural Bank of China shed 1.24 percent. China Life Insurance dipped 1.46 percent. Meanwhile, resource stocks showed more strength, with Jiangxi Copper gaining 1.53 percent, Chalco up by 1.06 percent, and Yankuang Energy climbing 1.01 percent. PetroChina and Sinopec showed small declines, but Huaneng Power surged by 2.75 percent, China Shenhua Energy added 0.42 percent, Gemdale spiked by 4.24 percent, and Poly Developments and China Vanke rose by 1.87 percent and 2.74 percent, respectively.
The positive sentiment in China’s market reflects a similar rally on Wall Street, where major indexes closed higher on Monday. The Dow added 273.17 points, or 0.65 percent, to finish at 42,387.57. The NASDAQ edged up 48.58 points, or 0.26 percent, ending at 18,567.19, while the S&P 500 gained 15.40 points, or 0.27 percent, to close at 5,823.52. This uptick was fuelled largely by a sharp decline in oil prices. West Texas Intermediate crude for December delivery dropped by $4.40, or 6.1 percent, to reach $67.38 per barrel, with the decrease driven by eased supply concerns after Israel refrained from striking Iranian oil facilities over the weekend.
Traders are also keeping a close eye on upcoming U.S. economic data releases this week. Reports covering job growth, personal income, and spending will be released, providing insight into the Federal Reserve’s preferred inflation metrics. These figures may influence both economic forecasts and expectations around the Fed’s pace of interest rate cuts.
Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.
