China Bourse Likely To Give Up Support At 2,900 Points

(RTTNews) - The China stock market has tracked lower in two straight sessions, retreating more than 30 points or 1 percent along the way. The Shanghai Composite Index now rests just above the 2,900-point plateau and it's expected to take further damage on Friday.

The global forecast for the Asian markets is soft on continued concerns over the prospects for a trade deal between the United States and China. The European and U.S. markets were down and the Asian markets are expected to follow suit.

The SCI finished modestly lower on Thursday following losses from the insurance companies, support from the oil companies and mixed performances from the financials and properties.

For the day, the index sank 7.41 points or 0.25 percent to finish at 2,903.64 after trading between 2,891.53 and 2,910.36. The Shenzhen Composite Index lost 3.92 points or 0.24 percent to end at 1,631.24.

Among the actives, Industrial and Commercial Bank of China skidded 1.21 percent, while Bank of China and China Construction Bank both collected 0.28 percent, Bank of Communications lost 0.36 percent, China Merchants Bank shed 0.38 percent, China Life Insurance plunged 3.03 percent, Ping An Insurance tumbled 1.94 percent, PetroChina jumped 1.63 percent, China Petroleum and Chemical (Sinopec) added 0.41 percent, China Shenhua Energy dipped 0.23 percent, Gemdale gained 0.42 percent, Poly Developments fell 0.49 percent, China Vanke rose 0.38 percent, CITIC Securities slid 0.37 percent and Baoshan Iron and China Minsheng Bank were unchanged.

The lead from Wall Street continues to be negative as stocks opened lower on Thursday and stayed that way throughout the day, extending losses from the previous session.

The Dow shed 54.80 points or 0.20 percent to finish at 27,766.29, while the NASDAQ lost 20.52 points or 0.24 percent to 8,506.21 and the S&P 500 fell 4.92 points or 0.15 percent to 3,103.54.

The continued weakness on Wall Street reflected renewed uncertainty about the U.S. and China finalizing a phase one trade deal after reports said completion of a phase one U.S.-China trade deal could slide into next year.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits were unchanged last week. Also, the National Association of Realtors said U.S. existing home sales rebounded more than expected in October.

Crude oil prices rebounded from early losses and moved higher to their best levels in two months on Thursday, on news that OPEC and its allies will likely extent output cuts beyond March 2020. West Texas Intermediate Crude oil futures for January ended up $1.57 or 2.8 percent at $58.58 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos