China Stock Market Tipped To Open Under Pressure

(RTTNews) - The China stock market has finished lower in two straight sessions, sliding more than 25 points or 0.7 percent along the way. The Shanghai Composite Index now sits just above the 3,270-point plateau and it may extend its losing streak on Friday.

The global forecast for the Asian markets is soft on concerns over the economic recovery following the COVID-19 pandemic. The European and U.S. markets were down and the Asian markets are tipped to open in similar fashion.

The SCI finished modestly lower on Thursday following losses from the properties and oil companies, while the financials and insurance companies were mixed.

For the day, the index lost 13.49 points or 0.41 percent to finish at 3,270.44 after trading between 3,248.50 and 3,290.41. The Shenzhen Composite Index rose 1.76 points or 0.08 percent to end at 2,186.99.

Among the actives, China Construction Bank collected 0.33 percent, while China Merchants Bank shed 0.50 percent, Bank of Communications fell 0.22 percent, China Life Insurance tumbled 1.74 percent, Ping An Insurance added 0.51 percent, PetroChina lost 0.47 percent, China Petroleum and Chemical (Sinopec) dipped 0.25 percent, China Shenhua Energy sank 0.62 percent, Gemdale retreated 1.17 percent, Poly Developments declined 1.19 percent, China Vanke was down 0.46 percent and Industrial and Commercial Bank of China and Bank of China were unchanged.

The lead from Wall Street is negative as stocks opened lower on Thursday and remained in the red all day, extending losses from the previous session.

The Dow lost 130.40 points or 0.47 percent to finish at 27.901.98, while the NASDAQ tumbled 140.19 points or 1.27 percent to end at 10.910.28 and the S&P 500 fell 28.48 points or 0.84 percent to close at 3,357.01.

The weakness on Wall Street continued after the Federal Reserve revealed plans to leave interest rates at near-zero levels for years to come - suggesting the economic recovery will not be as swift as many were hoping.

Complicating matters, U.S. lawmakers remain at an impasse over a new coronavirus stimulus bill for weeks, and the upcoming elections could make reaching a compromise more difficult.

Negative sentiment was generated in reaction to a report from the Labor Department showing first-time claims for U.S. unemployment benefits fell less than expected last week. Also, the Commerce Department said new residential construction pulled back more than expected in August.

Crude oil prices moved higher on Thursday on reports that OPEC and its allies plan to crack down on countries that failed to comply with output cuts. West Texas Intermediate Crude oil futures for October ended up $0.81 or 2 percent at $40.97 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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