Markets

Continued Consolidation Predicted For Taiwan Bourse

(RTTNews) - The Taiwan stock market on Thursday ended the three-day winning streak in which it had jumped nearly 300 points or 2.4 percent. The Taiwan Stock Exchange now rests just above the 12,870-point plateau and it's looking at another red light for Friday's trade.

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 TSE finished modestly lower on Thursday following losses from the financial shares, technology stocks and cement companies.

For the day, the index dropped 104.02 points or 0.80 percent to finish at 12,872.74 after trading between 12,851.52 and 12,972.52.

Among the actives, Cathay Financial retreated 1.37 percent, while Mega Financial lost 0.70 percent, CTBC Financial fell 0.80 percent, Fubon Financial declined 1.14 percent, First Financial slid 0.95 percent, E Sun Financial dipped 0.37 percent, Taiwan Semiconductor Manufacturing Company skidded 1.54 percent, United Microelectronics Corporation rose 0.19 percent, Hon Hai Precision dropped 0.89 percent, Largan Precision tumbled 1.69 percent, Catcher Technology sank 0.80 percent, MediaTek tanked 2.92 percent, Formosa Plastic shed 0.38 percent, Asia Cement surrendered 0.93 percent and Taiwan Cement was down 0.70 percent.

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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