The Shanghai Composite Index will likely fall to 1,700, a 15 percent drop from yesterday’s close, after the benchmark index broke through a triangular consolidation trading pattern, according to Chart Partners.
The Standard & Poor’s 500 Index may slump about 5 percent in an “overdue” decline that could hit emerging-market stock benchmarks even harder, according to technical analysis by Chart Partners Group Ltd.
China’s stocks rose to a two-month high after Premier Wen Jiabao and the central bank governor said they will help Europe resolve its debt crisis, easing concerns an export slowdown will worsen and curb growth.
China’s benchmark stock index rose for a sixth day as investors shifted funds to financial companies on improving earnings prospects from so-called defensive companies including producers of consumer staples.
The Standard & Poor’s 500 Index is poised to fall as chronic unemployment rises to a record among jobless Americans, according to Mitsubishi UFJ Securities Co. the brokerage unit of Japan’s biggest bank by market value.