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China Stocks mixed as Fed's policy easing hopes offset economic worries

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The Mainland China equity market closed mixed on Thursday, 11 July 2019, with benchmark Shanghai Composite snapping three days of losing streak, as risk sentiments underpinned on tracking rallies on Wall Street overnight after dovish testimony from Federal Reserve chair Jerome Powell that offered the prospect of looser monetary policy. Market gains were, however, capped amid concerns about a slowdown in the country's economic growth despite a flurry of support measures to spur domestic demand to offset the trade war's impact. At closing bell, the benchmark Shanghai Composite Index rose 0.08%, or 2.46 points, to 2,917.76. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.12%, or 1.94 points, to 1,548.93. The blue-chip CSI300 index shed 0.04%, or 1.52 points, to 3,785.22

U. S. stocks ended higher on Wednesday and the S&P 500 briefly crossed the 3,000-point mark for the first time following Powell's remarks. The S&P 500 closed 0.5% higher at 2,993.07. The Dow Jones Industrial Average climbed 76.71 points to finish at 26,860.20, while the Nasdaq Composite saw a record close at 8,202.53.

In testimony to the House Financial Services Committee, Fed Chair Powell said business investments across the U.

S. have slowed notably recently as uncertainties over the economic outlook linger. Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened, Powell said in prepared remarks. Powell said the central bank stands ready to "act as appropriate" to support a record-breaking leg of U. S. economic growth. Powell's remarks confirming market expectations for a rate cut at the Fed's two-day meeting ending July 31

China is due to release second quarter economic growth data next week. Market pundits expects that growth in the world's second-largest economy is expected to slow to a near 30-year low of 6.2% this year, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

CURRENCY NEWS: China yuan was higher against greenback on Thursday, despite a flurry of support measures to spur domestic demand to offset the trade war's impact. . Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8677 per dollar, 0.26% firmer than the previous fix of 6.8856. The spot yuan was changing hands at 6.8631, 119 bps firmer than the previous late session close.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 11 2019. 17:02 IST