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Win Streak May End For China Stock Market

The China stock market has climbed higher in five straight sessions, gathering more than 55 points or 1.7 percent along the way. The Shanghai Composite Index now rests just above the 3,430-point plateau although the rally may stall on Monday.

The global forecast for the Asian markets is flat to lower thanks to a fall in crude oil prices. The European and U.S. markets were down on Friday, and the Asian bourses are expected to follow suit.

The SCI finished slightly higher on Friday as sharp gains from the insurance companies were mitigated by weakness from the financials, properties and oil companies.

For the day, the index added 4.88 points or 0.14 percent to finish at 3,432.67 after trading between 3,414.33 and 3,438.79. The Shenzhen Composite Index gained 10.48 points or 0.52 percent to end at 2,039.17.

Among the actives, China Life surged 3.78 percent, while Ping An Insurance soared 5.37 percent, Agricultural Bank of China skidded 1.36 percent, Industrial and Commercial Bank of China plunged 2.01 percent, China Vanke shed 0.58 percent, Gemdale tumbled 2.09 percent, PetroChina dropped 1.53 percent and China Petroleum and Chemical (Sinopec) plummeted 2.25 percent.

The lead from Wall Street suggests mild consolidation as stocks spent most of Friday's trade in the red before eventually ending mixed.

The Dow shed 39.73 points or 0.17 percent to 23,422.21, while the NASDAQ added 0.89 points or 0.01 percent to 6,750.94 and the S&P 500 fell 2.32 points or 0.09 percent to 2,582.30. For the week, the Dow lost 0.5 percent, while the NASDAQ and the S&P both eased 0.2 percent.

The mixed close came as traders continued to digest the details of the Senate Republican version of tax reform legislation. The Senate bill includes large differences from the House version, including a delay in implementing a corporate tax rate cut.

On the economic front, the University of Michigan noted a bigger than expected pullback in consumer sentiment in November following the 13-year high index reading in the previous month.

Crude oil futures fell Friday, trimming recent gains after the U.S. oil rig count jumped last week. Nymex December oil futures settled at $56.74 a barrel, down 0.8 percent.

by RTT Staff Writer

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