Plus   Neg

China Stock Market May Stop The Bleeding On Monday

The China stock market has moved lower in back-to-back sessions, dropping almost 30 points or 1 percent along the way. The Shanghai Composite Index now rests just beneath the 2,870-point plateau although it may find traction on Monday.

The global forecast for the Asian markets suggests mild upside on optimism that some countries are taking steps to reopen following the Covid-19 pandemic. The European and U.S. markets were up on Friday amid considerable volatility and the Asian bourses are tipped to follow suit.

The SCI finished barely lower on Friday following losses from the property stocks and the financial shares, while the resource stocks were mixed.

For the day, the index eased 1.88 points or 0.07 percent to finish at 2,868.46 after trading between 2,863.37 and 2,884.22. The Shenzhen Composite Index rose 2.87 points or 0.16 percent to end at 1,808.56.

Among the actives, Industrial and Commercial Bank of China eased 0.20 percent, while China Construction Bank was down 0.16 percent, China Merchants Bank fell 0.24 percent, China Life Insurance skidded 1.36 percent, PetroChina added 0.45 percent, China Petroleum and Chemical (Sinopec) sank 0.46 percent, Baoshan Iron dropped 1.04 percent, Gemdale retreated 1.10 percent, Poly Developments shed 0.59 percent and China Vanke, Bank of China and Ping An Insurance were unchanged.

The lead from Wall Street is cautiously optimistic as stocks saw considerable volatility Friday after coming under pressure early in the session. The major averages bounced back and forth across the unchanged line before eventually ending higher.

The Dow added 60.08 points or 0.25 percent to 23,685.42, while the NASDAQ climbed 70.84 points or 0.79 percent to 9,014.56 and the S&P 500 rose 11.20 points or 0.39 percent to 2,863.70. For the week, the Dow shed 2.7 percent, the S&P fell 2.3 percent and the NASDAQ lost 1.2 percent.

The higher close on Wall Street came as traders shrugged off some dismal U.S. economic data, including reports showing record decreases in retail sales and industrial production in April.

Concerns about the economy were offset by a University of Michigan report showing an unexpected improvement in consumer sentiment in May, as well as ongoing plans for states and countries to reopen.

Crude oil futures ended sharply higher on Friday, extending recent gains amid hopes for some gains in energy demand, and on hopes the output cuts from major producers will support prices. West Texas Intermediate Crude oil futures for June ended up $1.87 or 6.8 percent at $29.43 a barrel.

Closer to home, China will release April figures for house prices later today; in March, prices were up 5.3 percent on year.

For comments and feedback contact: editorial@rttnews.com

Follow RTT