China Bourse Tipped To Open Under Pressure On Monday
(RTTNews) - The China stock market has finished lower in four straight sessions, surrendering more than 70 points or 2.3 percent along the way. The Shanghai Composite Index now rests just beneath the 2,940-point plateau and it's got another negative lead again on Monday.
The global forecast for the Asian markets is soft, thanks to disappointing economic data and ongoing uncertainty over trade negotiations between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.
The SCI finished sharply lower on Friday following losses from the financial shares, property stocks and oil and insurance companies.
For the day, the index tumbled 39.19 points or 1.32 percent to finish at 2,938.14 after trading between 2,933.24 and 2,987.20. The Shenzhen Composite Index dropped 19.20 points or 1.17 percent to end at 1,616.72.
Among the actives, Industrial and Commercial Bank of China shed 0.70 percent, while Bank of China lost 0.54 percent, China Construction Bank eased 0.14 percent, China Merchants Bank tumbled 2.22 percent, China Life Insurance sank 0.78 percent, Ping An Insurance skidded 2.15 percent, PetroChina retreated 0.82 percent, China Petroleum and Chemical (Sinopec) dropped 0.99 percent, China Shenhua Energy declined 1.09 percent, Gemdale plummeted 3.00 percent, Poly Developments plunged 2.30 percent and China Vanke lost 1.43 percent.
The lead from Wall Street is negative as stocks opened lower on Friday and stayed that way through the session.
The Dow shed 255.68 points or 0.95 percent to end at 26,770.20, the NASDAQ sank 67.31 points or 0.83 percent to 8,089.54 and the S&P 500 fell 11.75 points or 0.39 percent to 2,986.20. For the week, the Dow eased 0.2 percent, the NASDAQ added 0.4 percent and the S&P rose 0.5 percent.
The weakness on Wall Street reflected concerns about the global economic outlook following soft Chinese data that showed its economy grew at the slowest rate in three decades in Q3.
In U.S. economic news, the Conference Board reported an unexpected drop by its reading on leading U.S. economic indicators in September.
Lingering uncertainty about a possible U.S.-China trade deal and questions about the Brexit deal getting through parliament also weighed on the markets.
Crude oil futures dropped Friday as disappointing GDP data from China added to concerns about the outlook for global energy demand. West Texas Intermediate crude oil futures for November eased $0.15 or 0.3 percent at $53.78 a barrel.
Closer to home, China will provide September figures for new home prices later today; in August, prices were up 0.58 percent on month.
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