China Stock Market Tipped To Halt Losing Streak
(RTTNews) - The China stock market has moved lower in three straight sessions, sinking more than 50 points or 1.7 percent along the way. The Shanghai Composite Index now rests just beneath the 3,420-point plateau although it's due for support on Monday.
The global forecast for the Asian markets is positive on optimism for the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.
The SCI finished modestly lower on Friday as losses from the property stocks were mitigated by support from the financials and resource companies.
For the day, the index shed 22.41 points or 0.65 percent to finish at 3,418.98 after trading between 3,416.78 and 3,457.89. The Shenzhen Composite Index tumbled 36.90 points or 1.62 percent to end at 2,239.68.
Among the actives, Industrial and Commercial Bank of China jumped 1.95 percent, while Bank of China collected 0.61 percent, China Construction Bank rallied 2.08 percent, China Merchants Bank advanced 0.95 percent, Bank of Communications spiked 1.86 percent, China Life Insurance fell 0.37 percent, Jiangxi Copper accelerated 2.11 percent, Aluminum Corp of China (Chalco) skyrocketed 7.58 percent, Yanzhou Coal surged 7.35 percent, PetroChina perked 1.37 percent, China Petroleum and Chemical (Sinopec) added 0.69 percent, China Shenhua Energy improved 1.16 percent, Gemdale retreated 1.47 percent, Poly Developments lost 0.36 percent, China Vanke was up 0.29 percent, China Fortune Land tumbled 2.22 percent and Beijing Capital Development sank 0.36 percent.
The lead from Wall Street is upbeat as the major averages opened mostly higher on Friday and remained in the green throughout the trading day.
The Dow jumped 229.26 points or 0.66 percent to finish at 34,777.76, while the NASDAQ spiked 119.44 points or 0.88 percent to end at 13,752.24 and the S&P 500 added 30.98 points or 0.74 percent to close at 4,232.60. For the week, the Dow surged 2.7 percent, the NASDAQ fell 1.5 percent and the S&P 500 gained 1.2 percent.
The strength on Wall Street followed the closely watched Labor Department report showing weaker than expected job growth in April. Traders reacted positively to this because the it reinforced the view the Federal Reserve will leave ultra-easy monetary policy in place for the foreseeable future.
The data led to a particularly strong upward move by high-growth tech stocks, which are seen as more susceptible to higher interest rates.
Crude oil prices moved higher on Friday on optimism for increased demand in Europe and the U.S. although gains were capped by coronavirus concerns in Asia. West Texas Intermediate Crude oil futures for June ended up $0.19 or 0.3 percent at $64.90 a barrel. WTI crude futures gained about 2.1 percent in the week.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.