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China Stock Market May See Renewed Consolidation

The China stock market on Friday snapped the two-day slide in which it had lost almost 60 points or 2.2 percent. The Shanghai Composite Index now rests just above the 2,700-point plateau although it figures to head south again on Monday.

The global forecast for the Asian markets is soft on ongoing trade war concerns and a drop in crude oil prices. The European markets were mixed and the U.S. bourses were down - and the Asian markets figure to split the difference.

The SCI finished higher lower on Friday following gains from the energy producers, while the financials and properties were mixed.

For the day, the index picked up 10.71 points or 0.40 percent to finish at 2,702.30 after trading between 2,683.72 and 2,728.55. The Shenzhen Composite Index added 1.50 points or 0.10 percent to end at 1,433.30.

Among the actives, Gemdale dipped 0.11 percent, while Poly Real Estate advanced 0.79 percent, China Vanke jumped 1.75 percent, CITIC Securities was up 0.19 percent, Bank of China added 0.29 percent, China Construction Bank eased 0.15 percent, Industrial and Commercial Bank of China collected 0.38 percent, China Minsheng Bank slid 0.17 percent, China Merchants Bank spiked 2.44 percent, China Life Insurance shed 0.28 percent, China Petroleum and Chemical (Sinopec) lost 0.30 percent, PetroChina retreated 0.61 percent and China Shenhua Energy soared 4.83 percent.

The lead from Wall Street is negative as stocks fluctuated on Friday before ending modestly lower. With the drop, the NASDAQ and the S&P extended recent losses.

The Dow fell 79.33 points or 0.31 percent to 25,916.54, the NASDAQ dipped 20.18 points or 0.25 percent to 7,902.54 and the S&P 500 slipped 6.37 points or 0.22 percent to 2,871.68. For the week, the NASDAQ plunged 2.6 percent, the S&P fell 1 percent and the Dow lost 0.2 percent.

The lower close came amid ongoing trade concerns after President Donald Trump suggested he may impose tariffs on another $267 billion worth of Chinese goods. China's Commerce Ministry has said it will roll out retaliatory measures if the U.S. imposes any new tariffs.

In economic news, the Labor Department noted stronger than expected job growth in August. The report also said the annual rate of average hourly employee earnings growth accelerated. The data painted a positive picture of the economy but reinforced expectations the Federal Reserve will raise interest rates later this month.

Crude oil prices eased Friday, as concerns about a drop in demand due to trade war tensions slightly outweighed data showing a fall in stockpiles. Crude oil futures for October delivery settled at $67.75 a barrel, down 2 cents. For the week, crude oil future lost 2.9 percent.

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