On Wednesday, the Chinese stock market experienced a downturn, following a brief recovery the previous day which interrupted a three-day losing streak that saw a decline of nearly 70 points or 2.3 percent. The Shanghai Composite Index currently hovers just above the 3,225-point level, with indications suggesting an upward movement on Thursday.
The global outlook for Asian markets appears favorable, influenced by U.S. inflation data that have alleviated concerns regarding future interest rates. Both European and U.S. markets closed on a robust note, providing positive cues for Asian exchanges to follow.
On Wednesday, the Shanghai Composite Index concluded slightly lower, as losses in property and resource stocks were counterbalanced by strength from the financial sector. Specifically, the index fell 13.82 points or 0.43 percent to settle at 3,227.12, fluctuating between 3,222.24 and 3,245.90 during the trading day. Meanwhile, the Shenzhen Composite Index declined by 14.71 points or 0.77 percent to close at 1,901.14.
Key performers included Industrial and Commercial Bank of China, which gained 0.30 percent; Bank of China, up 0.37 percent; and China Merchants Bank, which saw a significant rise of 1.98 percent. Other notable movements included Agricultural Bank of China, increasing by 0.40 percent, while China Life Insurance fell by 0.65 percent, Jiangxi Copper slid 1.09 percent, Aluminum Corp of China (Chalco) dropped 1.86 percent, Yankuang Energy decreased by 0.37 percent, and PetroChina lost 0.45 percent. Conversely, Huaneng Power rose 0.47 percent, while China Shenhua Energy and Poly Developments saw dips of 0.28 percent and 0.46 percent, respectively. Meanwhile, Gemdale climbed 1.12 percent, China Vanke declined by 0.72 percent. Both China Construction Bank and China Petroleum and Chemical (Sinopec) remained unchanged.
Wall Street provided a strong lead, with major indices opening sharply higher and maintaining those gains throughout the session. The Dow Jones Industrial Average surged 703.27 points or 1.65 percent to close at 43,221.55. The NASDAQ gained 466.84 points or 2.45 percent, closing at 19,511.23, while the S&P 500 increased by 107.00 points or 1.83 percent, ending the day at 5,949.91.
This rally was largely fueled by positive reactions to the U.S. Labor Department's detailed report on December's consumer price inflation. Although the report indicated that consumer prices rose slightly more than anticipated, the annual growth rate of core consumer prices unexpectedly slowed.
Additionally, optimistic earnings reports from major financial institutions such as JPMorgan Chase, Goldman Sachs, and Citigroup contributed to the upbeat market sentiment. In the commodities sector, oil prices saw a surge due to a reduction in U.S. crude inventories over the previous week, coupled with potential supply disruptions from new sanctions imposed on Russia. Consequently, West Texas Intermediate Crude oil futures for February rose by $2.54, or 3.3 percent, reaching $80.04 per barrel.
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