Losing Streak Likely To Continue For China Shares
(RTTNews) - The China stock market has closed lower in three straight sessions, retreating more than 35 points or 1.3 percent along the way. The Shanghai Composite Index now rests just above the 2,870-point plateau and it's predicted to see continued consolidation again on Monday.
The global forecast for the Asian markets is negative thanks to unrest in Hong Kong and how it may delay any resolution in the trade spat between the United States and China. The European and U.S. markets were down on Friday and the Asian bourses are tipped to open in similar fashion.
The SCI finished modestly lower on Friday following losses from the financial shares and oil and insurance companies, while the properties were mixed.
For the day, the index shed 17.71 points or 0.61 percent to finish at 2,871.98 after trading between 2,858.58 and 2,892.39. The Shenzhen Composite Index eased 4.75 points or 0.30 percent to end at 1,593.10.
Among the actives, Industrial and Commercial Bank of China shed 0.86 percent, while Bank of China lost 0.55 percent, China Construction Bank fell 0.56 percent, China Merchants Bank tumbled 1.64 percent, China Minsheng Bank collected 0.16 percent, China Life Insurance plunged 2.21 percent, Ping An Insurance dropped 0.92 percent, PetroChina slid 0.53 percent, China Petroleum and Chemical (Sinopec) dipped 0.40 percent, China Shenhua Energy eased 0.17 percent, Gemdale was down 0.25 percent, Poly Developments added 0.21 percent and China Vanke lost 0.36 percent.
The lead from Wall Street is soft as stocks gave ground in Friday's shortened session retreating from Wednesday's record closing highs.
The Dow shed 112.59 points or 0.40 percent to 28,051.41, while the NASDAQ lost 39.70 points or 0.46 percent to 8,665.47 and the S&P 500 fell 12.65 points or 0.40 percent to 3,140.98. For the week, the NASDAQ surged 1.7 percent, the S&P jumped 1 percent and the Dow rose 0.6 percent.
The weakness on Wall Street came as traders cashed in on recent gains amid concerns rising tensions between the U.S. and China over the situation in Hong Kong could impact ongoing trade talks.
After President Donald Trump signed two bills in support of pro-democracy protesters in Hong Kong, a spokesman for China's Foreign Ministry threatened strong countermeasures.
After moving higher in the two previous sessions, crude oil prices showed a substantial pullback on Friday on rising tensions between the U.S. and China. Crude for January delivery plunged $2.94 or 5.1 percent to $55.17 a barrel, ending at its lowest closing level in a month.
Closer to home, China will see November numbers for the manufacturing PMI from Caixin later this morning. The index is predicted to see a score of 51.3, down from 51.7 in October.
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