Plus   Neg

Continued Consolidation Called For China Stock Market

The China stock market headed south again on Friday, one session after it had halted the six-day slide in which it had retreated more than 180 points or 7 percent. The Shanghai Composite Index now rests just beneath the 2,775-point plateau and it may take further damage on Monday.

The global forecast for the Asian markets is negative on perpetual trade concerns between the United States and China. The European and U.S. markets were down on Friday and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly lower on Friday following losses from the property stocks and a mixed picture from the financial sector.

For the day, the index sank 19.80 points or 0.71 percent to finish at 2,774.75 after trading between 2,770.48 and 2,808.33. The Shenzhen Composite Index fell 19.10 points or 1.27 percent to end at 1,479.86.

Among the actives, Industrial and Commercial Bank of China collected 0.55 percent, while Bank of China added 0.56 percent, China Merchants Bank dropped 1.05 percent, China Life Insurance rose 0.25 percent, Ping An Insurance dipped 0.19 percent, China Shenhua Energy lost 0.33 percent, Gemdale plunged 2.73 percent, Poly Developments tumbled 1.82 percent, China Vanke sank 1.30 percent, CITIC Securities skidded 0.57 percent and China Petroleum and Chemical (Sinopec), China Construction Bank and PetroChina were unchanged.

The lead from Wall Street is soft as stocks opened lower Friday, made back some ground as the day progressed but still ended in the red.

The Dow shed 90.76 points or 0.34 percent to finish at 26,287.44, while the NASDAQ lost 80.02 points or 1.00 percent to 7,959.14 and the S&P 500 fell 19.44 points or 0.66 percent to 2,918.65. For the week, the Dow shed 0.7 percent, the NASDAQ lost 0.6 percent and the S&P fell 0.5 percent.

The weakness on Wall Street came after President Donald Trump told reporters the U.S. is not going to do business with Chinese tech giant Huawei. Trump also indicated he is not ready to make a trade deal with China, suggesting the U.S. could skip the next round of trade talks in September.

In U.S. economic news, the Labor Department noted a modest increase in producer prices in July.

Crude oil prices rose sharply on Friday, extending recent gains on reports Saudi Arabia will cut crude exports next month. West Texas Intermediate Crude oil futures for September ended up $1.96 or 3.7 percent at $54.50 a barrel.

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