China Stock Market Tipped To End Losing Streak
(RTTNews) - The China stock market has finished lower in three straight sessions, sliding more than 50 points or 1.6 percent along the way. The Shanghai Composite Index now sits just beneath the 3,280-point plateau although it may stop the bleeding on Monday.
The global forecast for the Asian markets is mixed to slightly higher, with hopes for stimulus tempered by climbing coronavirus cases. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SCI finished sharply lower on Friday following losses from the power and resource companies, while the properties and financials were mixed.
For the day, the index dropped 34.50 points or 1.04 percent to finish at 3,278.00 after trading between 3,276.62 and 3,326.05. The Shenzhen Composite Index tumbled 42.68 points or 1.90 percent to end at 2,200.56
Among the actives, Bank of China collected 0.31 percent, while China Merchants Bank rose 0.07 percent, Bank of Communications climbed 1.31 percent, China Life Insurance tanked 3.33 percent, Ping An Insurance jumped 1.71 percent, PetroChina added 0.49 percent, China Petroleum and Chemical (Sinopec) gathered 1.30 percent, China Shenhua Energy dropped 0.95 percent, Huaneng Power sank 1.20 percent, Aluminum Corp of China (Chalco) lost 0.34 percent, Yanzhou Coal Mining was down 0.85 percent, Gemdale advanced 0.95 percent, Poly Developments gained 0.61 percent, China Vanke fell 0.39 percent and Industrial and Commercial Bank of China and China Construction Bank were unchanged.
The lead from Wall Street offers little guidance as stocks showed a lack of direction on Friday, bouncing back and forth across the unchanged line before ending mixed.
The Dow eased 28.09 points or 0.10 percent to finish at 28,335.57, while the NASDAQ gained 42.28 points or 0.37 percent to end at 11,548.28 and the S&P 500 rose 11.90 points or 0.34 percent to close at 3,465.39. For the week, the Dow shed 0.9 percent, the NASDAQ lost 1.1 percent and the S&P fell 0.5 percent.
The choppy trading on Friday came amid a lack of concrete news out of Washington regarding a new coronavirus stimulus bill. Traders have generally remained optimistic that a bill will eventually be passed, although they may be tired of waiting.
A steep drop by shares of Intel (INTC) weighed on the Dow, with the semiconductor giant plunging 10.6 percent after reporting Q3 earnings that beat estimates but on weaker than expected revenues for its Data Center Group. Credit card giant American Express (AXP) also tumbled after reporting Q3 earnings that missed expectations.
Crude oil prices drifted lower on Friday, weighed down by worries about energy demand due to the surge in coronavirus cases and lockdown measures in several countries. West Texas Intermediate Crude oil futures for December ended down by $0.79 or 1.9 percent at $39.85 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.