logo
Plus   Neg
Share
Email
Comment

China Shares May Reverse Friday's Gains

The China stock market on Friday snapped the four-day losing streak in which it had surrendered more than 115 points or 3.2 percent. The Shanghai Composite Index now rests just above the 3,460-point plateau although it figures to head south again on Monday.

The global forecast for the Asian markets is broadly negative over concerns for the outlook on interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets figure to follow that lead.

The SCI finished modestly higher on Friday as gains from the oil and insurance companies were offset by weakness from the financial shares and property stocks.

For the day, the index advanced 15.10 points or 0.44 percent to finish at 3,462.08 after trading between 3,388.86 and 3,463.16. The Shenzhen Composite Index added 0.47 points or 0.01 percent to end at 1,821.53.

Among the actives, Bank of China skidded 1.08 percent, while Bank of Communications shed 0.58 percent, Industrial and Commercial Bank of China dropped 1.04 percent, China Life jumped 1.61 percent, Ping An added 0.70 percent, PetroChina surged 3.33 percent, China Petroleum and Chemical (Sinopec) soared 5.31 percent and China Vanke lost 0.32 percent.

The lead from Wall Street is brutal as stocks moved sharply lower on Friday as traders worried about the prospect of higher interest rates - extending the pullback last week's record highs.

The Dow tumbled 665.75 points or 2.54 percent to 25,520.96, the NASDAQ slumped 144.92 points or 1.96 percent to 7,240.95 and the S&P 500 fell 59.85 points or 2.12 percent to 2,762.13. For the week, the Dow lost 4.1 percent, the NASDAQ shed 3.5 percent and the S&P plunged 3.9 percent.

The concerns about higher interest rates came after the Labor Department reported stronger than expected job growth and a jump in wages. The Federal Reserve may respond to strong economic growth by hiking interest rates three times in 2018.

A negative reaction to quarterly results from big name tech companies like Google parent Alphabet (GOOGL) and Apple (AAPL) also contributed to the selloff.

Crude oil also responded negatively to the jobs report as WTI for March delivery fell 35 cents to $65.45 per barrel.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

comments powered by Disqus
Follow RTT