China Stock Market Tipped To Halt Losing Streak
(RTTNews) - The China stock market has finished lower in two straight sessions, sliding almost a dozen points or 0.4 percent along the way. The Shanghai Composite Index remains just above the 2,890-point plateau, although it's expected to find support on Friday.
The global forecast for the Asian markets is firm on growing optimism for a resolution in the trade war between the United States and China. The European and U.S. markets were sharply higher and the Asian markets are also expected to open in the green.
The SCI finished slightly lower on Thursday following losses from the properties and insurance companies, while the financials were mixed.
For the day, the index fell 2.84 points or 0.10 percent to finish at 2,890.92 after trading between 2,878.59 and 2,898.60. The Shenzhen Composite Index dipped 2.74 points or 0.17 percent to end at 1,591.08.
Among the actives, Industrial and Commercial Bank of China collected 0.37 percent, while Bank of China shed 0.28 percent, China Construction Bank eased 0.14 percent, China Merchants Bank tumbled 1.65 percent, China Life Insurance skidded 1.31 percent, Ping An Insurance fell 0.23 percent, China Petroleum and Chemical (Sinopec) added 0.28 percent, China Shenhua Energy dropped 1.49 percent, Gemdale plummeted 3.94 percent, Poly Developments plunged 3.79 percent, China Vanke retreated 2.18 percent, CITIC Securities sank 0.76 percent and PetroChina and China Minsheng Bank were unchanged.
The lead from Wall Street is broadly positive as stocks opened higher Thursday and extended their gains as the day progressed.
The Dow climbed 326.15 points or 1.25 percent to 26,362.25, while the NASDAQ soared 116.51 points or 1.48 percent to 7,973.39 and the S&P 500 jumped 36.64 points or 1.27 percent to 2,924.58.
The initial strength on Wall Street came on reports that China is seeking to de-escalate the trade war with the U.S. The Chinese Ministry of Commerce has indicated China does not currently intend to retaliate against President Donald Trump's latest threat to raise the rate of tariffs on Chinese imports.
In economic news, the Labor Department noted a modest increase in first-time claims for U.S. jobless benefits last week. Also, the Commerce Department said growth in U.S. economic activity slowed more than estimated in the second quarter. And the National Association of Realtors noted a sharp pullback in pending home sales in July.
Crude oil prices ended sharply higher on Thursday, extending gains from previous session as fading worries about U.S.-China trade war eased concerns of energy demand and helped push up prices. West Texas Intermediate Crude oil futures for October ended up $0.93 or 1.7 percent at $56.71 a barrel.
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