China Shares Predicted To Open Under Pressure On Monday

(RTTNews) - The China stock market has tracked lower in consecutive trading days, surrendering almost 140 points or 4 percent along the way. The Shanghai Composite Index now sits just beneath the 3,200-point plateau and it's tipped to open in the red again on Monday.

The global forecast for the Asian markets is soft on rising tensions between the United States and China. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The SCI finished sharply lower on Friday with damage across the board - especially from the financials shares, property stocks and insurance companies.

For the day, the index plummeted 128.34 points or 3.86 percent to finish at 3,196.77 after trading between 3,184.96 and 3,319.13. The Shenzhen Composite Index plunged 112.57 points or 5 percent to end at 2,138.36.

Among the actives, Industrial and Commercial Bank of China dropped 0.99 percent, while Bank of China skidded 1.76 percent, China Construction Bank tanked 2.39 percent, China Merchants Bank tumbled 2.81 percent, China Life Insurance plunged 6.60 percent, Ping An Insurance surrendered 2.53 percent, PetroChina sank 0.88 percent, China Petroleum and Chemical (Sinopec) shed 0.74 percent, Baoshan Iron retreated 2.77 percent, Gemdale plummeted 4.03 percent, Poly Developments lost 2.34 percent and China Vanke was down 1.78 percent.

The lead from Wall Street is soft as stocks opened lower on Friday and remained firmly in the red throughout the session.

The Dow shed 182.41 points or 0.68 percent to finish at 26,469.89, while the NASDAQ lost 98.22 points or 0.94 percent to end at 10,363.18 and the S&P 500 fell 20.03 points or 0.62 percent to close at 3,215.63. For the week, the Dow sank 0.8 percent, the NASDAQ fell 1.3 percent and the S&P eased 0.3 percent.

The weakness on Wall Street also came amid concerns about rising tensions between the U.S. and China after Beijing decided to revoke the license for the establishment and operation of the U.S. Consulate General in Chengdu.

The move comes just days after the U.S. government ordered China to close its consulate in Houston, Texas, amid accusations Chinese diplomats aided in economic espionage and the attempted theft of scientific research.

Worries about the continued spike in coronavirus cases also generated some negative sentiment, with daily new cases rising in the U.S. by at least 5 percent in 25 states.

Crude oil prices edged higher Friday as stronger than expected economic data from Europe and the U.S. helped ease worries about energy demand outlook. West Texas Intermediate crude oil futures for September ended higher by $0.22 or 0.5 percent at $41.29 a barrel.

Closer to home, China will release June figures for industrial profits later this morning; in May, profits plummeted 19.3 percent on year.

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

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