China Stock Market May See Additional Support

(RTTNews) - The China stock market on Friday halted the three-day slide in which it had plummeted more than 230 points or 6.7 percent. The Shanghai Composite Index now sits just beneath the 3,215-point plateau and it may add to its winnings on Monday.

The global forecast for the Asian markets is mixed to higher, with optimism for economic recovery tempered by renewed coronavirus concerns. The European and U.S. markets were mixed and the Asian bourses figure to follow suit.

The SCI finished slightly higher on Friday as gains from the broader market were capped by weakness from the properties and oil and insurance companies.

For the day, the index picked up 4.03 points or 0.13 percent to finish at 3,214.13 after trading between 3,181.27 and 3,252.78. The Shenzhen Composite Index advanced 14.69 points or 0.69 percent to end at 2,158.94.

Among the actives, Bank of China collected 0.29 percent, while China Construction Bank eased 0.16 percent, China Merchants Bank climbed 1.35 percent, China Life Insurance skidded 1.29 percent, Ping An Insurance fell 0.26 percent, PetroChina sank 0.45 percent, China Petroleum and Chemical (Sinopec) shed 0.25 percent, Baoshan Iron tumbled 1.41 percent, Gemdale dropped 1.03 percent, Poly Developments lost 0.43 percent, China Vanke retreated 1.13 percent and Industrial and Commercial Bank of China was unchanged.

The lead from Wall Street offers little clarity as stocks showed a lack of direction on Friday, bouncing back and forth across the unchanged line before closing mixed.

The Dow shed 62.76 points or 0.23 percent to finish at 26,671.95, while the NASDAQ added 29.36 points or 0.28 percent to end at 10,503.19 and the S&P 500 rose 9.16 points or 0.28 percent to close at 3,224.73. For the week, the Dow added 2.3 percent, the NASDAQ sank 1.1 percent and the S&P rose 1.2 percent.

The U.S. saw a record 77,255 new coronavirus cases on Thursday, according to data compiled by Johns Hopkins University. Reflecting the widespread resurgence of the coronavirus, the University of Michigan reported an unexpected deterioration in U.S. consumer sentiment in July.

A steep drop by shares of Netflix (NFLX) also weighed on the markets, with the video streaming giant plunging by 6.5 percent after reporting Q2 earnings that missed estimates and forecast weaker than expected subscriber growth.

Crude oil prices edged lower Friday, weighed by concerns about the outlook for near-term energy demand due to the surge in new coronavirus cases. West Texas Intermediate Crude oil futures for August ended down $0.16 or 0.4 percent at $40.59 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.


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