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China Bourse May Spin Its Wheels On Monday

The China stock market has climbed higher in four straight trading days, advancing more than 135 points or 5.1 percent along the way. The Shanghai Composite Index now rests just above the 2,675-point plateau although it may run out of steam on Monday.

The global forecast for the Asian markets is soft, with technology stocks expected to weigh amid profit taking and concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The SCI finished sharply higher on Friday following gains from the financial shares and oil and insurance companies.

For the day, the index soared 70.24 points or 2.70 percent to finish at the daily high of 2,676.48 after moving as low as 2,628.87. The Shenzhen Composite Index surged 44.78 points or 3.43 percent to end at 1,351.09.

Among the actives, Bank of China climbed 1.09 percent, while Industrial and Commercial Bank of China jumped 1.26 percent, China Merchants Bank soared 4.41 percent, China Construction Bank collected 1.13 percent, China life Insurance spiked 3.66 percent, China Petroleum and Chemical (Sinopec) added 0.96 percent, PetroChina advanced 1.34 percent, China Shenhua Energy gathered 1.40 percent, Gemdale rose 1.75 percent, Poly Developments dropped 1.17 percent, China Vanke gained 0.82 percent and CITIC Securities surged 2.48 percent.

The lead from Wall Street is soft as stocks shrugged off a positive open, moving lower as the day progressed and ending in the red.

The Dow fell 109.91 points or 0.43 percent to 25,270.83, while the NASDAQ slumped 77.06 points or 1.04 percent to 7,356.99 and the S&P slid 17.31 points or 0.63 percent to 2,723.06. For the week, the NASDAQ surged 2.6 percent, and the Dow and the S&P both jumped 2.4 percent.

The downturn on Wall Street was led by Apple (AAPL) after the company reported fiscal fourth quarter earnings and revenues that exceeded estimates but weaker than expected iPhone shipments, with disappointing guidance.

The pullback also came as traders digested the Labor Department report showing stronger than expected job growth in October. The upbeat jobs data paints of positive picture for the U.S. economy but also led to renewed concerns about the outlook for interest rates.

Crude oil prices moved lower Friday, extending losses as President Donald Trump announced plans to reimpose sanctions on Iran. The price of crude oil for December delivery fell $0.55 to $63.14 a barrel.

Closer to home, China will see October numbers for the services and composite indexes from Caixin later this morning; in September, their scores were 53.1 and 52.1, respectively.

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