China Bourse Likely To Remain Rangebound
(RTTNews) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day losing streak in which it had retreated almost 70 points or 2.3 percent. The Shanghai Composite Index now rests just above the 2,890-point plateau and it's expected to tick higher again on Monday.
The global forecast for the Asian markets is firm on growing optimism for a resolution in the trade dispute between the United States and China. The European and U.S. markets were up on Friday and the Asian bourses are tipped to follow suit.
The SCI finished modestly lower on Friday following mixed performances from the financial shares, property stocks and insurance companies.
For the day, the index shed 18.53 points or 0.64 percent to finish at 2,891.34 after trading between 2,891.20 and 2,917.83. The Shenzhen Composite Index sank 18.43 points or 1.13 percent to end at 1,605.70.
Among the actives, Industrial and Commercial Bank of China collected 0.70 percent, while Bank of China shed 0.28 percent, China Construction Bank eased 0.14 percent, China Merchants Bank added 0.24 percent, China Life Insurance climbed 1.11 percent, Ping An Insurance dipped 0.15 percent, PetroChina tumbled 1.79 percent, China Shenhua Energy plunged 2.03 percent, Gemdale fell 0.43 percent, Poly Developments lost 0.64 percent, China Vanke gained 0.38 percent and China Petroleum and Chemical (Sinopec) and China Minsheng Bank were unchanged.
The lead from Wall Street is positive as stocks showed a strong upward move, sending the major averages to fresh record closing highs.
The Dow added 222.93 points or 0.93 percent to 28.004.89, while the NASDAQ gained 61.81 points or 0.73 percent to 8,540.83 and the S&P 500 rose 23.83 points or 0.77 percent to 3,120.46. For the week, the Dow jumped 1.2 percent, the NASDAQ climbed 0.8 percent and the S&P was up 0.9 percent.
The strength on Wall Street came amid renewed optimism about a U.S.-China trade deal following comments from White House officials. Also, China has lifted a nearly five-year ban on imports of U.S. poultry in a goodwill gesture that could lead to more than $1 billion in annual shipments to China.
In economic news, the Commerce Department said U.S. retail sales rebounded slightly more than expected in October, while the Federal Reserve noted a steep drop in industrial output last month.
Crude oil prices ended sharply higher Friday on renewed optimism about a potential U.S.-China trade deal and hopes the OPEC might decide to deepen its supply cuts. West Texas Intermediate Crude oil futures for December ended up $0.95 or 1.7 percent at $57.72 a barrel.
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