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China Stock Market May Find Traction On Monday

The China stock market has finished lower in two straight sessions, skidding more than 50 points or 1.9 percent along the way. The Shanghai Composite Index now rests just above the 2,680-point plateau although it may stop the bleeding on Monday.

The global forecast for the Asian markets is firm thanks to surging oil prices and optimism for the outlook on global trade. The European and U.S. markets finished in the green and the Asian bourses are expected to open in similar fashion.

The SCI finished sharply lower on Friday with damage across the board - particularly among the financials, properties and oil and insurance companies.

For the day, the index plummeted 38.69 points or 1.42 percent to finish at 2,682.39 after trading between 2,679.78 and 2,715.63.

Among the actives, Bank of China shed 1.88 percent, while Industrial and Commercial Bank of China tumbled 3.50 percent, China Construction Bank plunged 3.80 percent, China Merchants Bank skidded 2.31 percent, China Life Insurance plummeted 3.56 percent, Ping An Insurance retreated 2.72 percent, PetroChina lost 1.06 percent, China Petroleum and Chemical (Sinopec) contracted 1.88 percent, China Shenhua Energy declined 2.29 percent, Gemdale fell 2.78 percent, Poly Developments cratered 4.59 percent and China Vanke was down 4.39 percent.

The lead from Wall Street is positive as stocks moved mostly higher on Friday as the major averages ended at multi-month closing highs.

The Dow jumped 443.86 points or 1.74 percent to 25,883.25, the NASDAQ added 45.46 points or 0.61 percent to 7,472.41 and the S&P 500 gained 29.87 points or 1.09 percent to 2,775.60. For the week, the Dow spiked 3.1 percent, the NASDAQ climbed 2.4 percent and the S&P rose 2.5 percent.

The strength on Wall Street came amid continued optimism about trade talks between the U.S. and China. A statement from the White House said high level U.S.-China trade talks this week led to progress between the two parties.

In economic news, the University of Michigan noted a bigger than expected rebound in consumer sentiment in February. Also, the Federal Reserve reported an unexpected decrease in industrial production in January.

Crude oil futures ended sharply higher on Friday, lifted by data showing declines in crude output from OPEC. West Texas Intermediate Crude oil futures for March ended up $1.18 or 2.2 percent at $55.59 a barrel, a three-month high.

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