Chinese stocks move forward to cap weekly gains

Traders and those learning how to trade may be watching events in China with interest to see how they impact the global market, after the nation's composite share index extended to its longest stretch of weekly gains for seven months.

The Shanghai Composite Index moved forward by 17.85 points, or 0.8 per cent, to reach 2,330.41, reports Bloomberg. This is its highest level since December 7th of last year.

Despite a 33 per cent tumble over the course of the last two years, the Shanghai Composite Index has climbed by six per cent so far in 2012 amid rumours the central bank will take measures to ease monetary policies and support stocks.

"Though China's growth is slowing, it won't be a hard landing," Zhang Ling, general manager at Shanghai River Fund Management, told the news provider.

"Monetary policy is starting to ease and the market's expectations of a reserve-requirement cut are rising," added Mr Ling.

Bloomberg noted yesterday that impressive Chinese factory data had failed to make an impact on forex trading in Europe.

Posted by Greg Secker