Plus   Neg

China Bourse May Take Further Damage On Monday

The China stock market on Friday snapped the two-day winning streak in which it had advanced more than 70 points or 2.3 percent. The Shanghai Composite Index now rests just above the 2,880-point plateau and it may extend its losses on Monday.

The global forecast for the Asian markets is soft on sliding crude oil prices and concerns over global trade. The European and U.S. markets ended lower on Friday and the Asian markets are tipped to open in similar fashion on Monday.

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

For the day, the index plummeted 73.41 points or 2.48 percent to finish at 2,882.30 after trading between 2,873.80 and 2,956.78. The Shenzhen Composite Index plunged 51.59 points or 3.26 percent to end at 1,533.22.

Among the actives, Industrial and Commercial Bank of China shed 0.36 percent, while Bank of China skidded 1.32 percent, China Construction Bank dropped 1.14 percent, China Life Insurance retreated 2.61 percent, Ping An Insurance declined 2.31 percent, China Merchants Bank sank 1.07 percent, PetroChina fell 1.10 percent, China Petroleum and Chemical (Sinopec) dipped 0.55 percent, China Shenhua Energy lost 1.60 percent, Gemdale plunged 3.89 percent, Poly Developments slid 2.77 percent, China Vanke was down 2.74 percent and CITIC Securities plummeted 2.92 percent.

The lead from Wall Street suggests volatile negativity as stocks saw wild swings on Friday, finally ending firmly in the red.

The Dow shed 98.68 points or 0.38 percent to finish at 25,764.00, while the NASDAQ lost 81.76 points or 1.04 percent to 7,816.28 and the S&P 500 fell 16.79 points or 0.58 percent to 2,859.53. For the week, the Dow shed 0.7 percent, the NASDAQ lost 1.3 percent and the S&P fell 0.8 percent.

Reflecting recent market sensitivity to trade-related news, Wall Street's late-day pullback followed reports that negotiations between the U.S. and China have stalled.

In economic news, the University of Michigan noted a substantial jump in consumer sentiment in May, although the data was recorded mostly before trade negotiations with China collapsed.

Crude oil futures settled modestly lower on Friday amid prospects of supply disruptions due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for June ended down $0.11 or 0.17 percent at $62.76 a barrel.

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