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Lower Open Predicted For China Stock Market

The China stock market has finished lower in three straight sessions, falling more than 85 points or 2.9 percent along the way. The Shanghai Composite Index now rests just beneath the 2,815-point plateau and it's likely to see continued geopolitical-fueled consolidation on Monday.

The global forecast for the Asian markets offers little clarity as optimism over reopening economies was tempered by rising tensions between the United States and China. The European and U.S. markets were mixed and little changed and the Asian bourses figure to follow suits.

The SCI finished sharply lower on Friday following losses from the financial shares, property stocks and oil and insurance companies.

For the day, the index lost 54.16 points or 1.89 percent to finish at 2,813.77 after trading between 2,808.02 and 2,863.05. The Shenzhen Composite Index dropped 36.22 points or 2.02 percent to end at 1,752.42.

Among the actives, Industrial and Commercial Bank of China dropped 0.98 percent, while Bank of China sank 0.87 percent, China Construction Bank retreated 1.71 percent, China Merchants Bank tumbled 3.17 percent, China Life Insurance declined 2.74 percent, Ping An Insurance surrendered 3.12 percent, PetroChina skidded 1.80 percent, China Petroleum and Chemical (Sinopec) fell 2.52 percent, China Shenhua Energy shed 1.85 percent, Gemdale plunged 2.06 percent, Poly Developments tanked 1.99 percent and China Vanke was down 1.64 percent.

The lead from Wall Street is murky as stocks showed a lack of direction on Friday, bouncing back and forth across the unchanged line before ending mixed.

The Dow fell 8.96 points or 0.04 percent to end at 24,465.16, while the NASDAQ added 39.71 points or 0.43 percent to finish at 9.324.59 and the S&P 500 rose 6.94 points or 0.24 percent to end at 2,955.45. For the week, the Dow jumped 3.3 percent, the NASDAQ spiked 3.4 percent and the S&P climbed 3.2 percent.

The choppy trading on Wall Street came as traders were reluctant to make significant moves in light of the volatility seen in recent sessions. Concerns about rising tensions between the U.S. and China also kept traders on the sidelines, as Beijing moved to strengthen control over Hong Kong with new security laws.

The latest developments come after the Senate passed a bill on Wednesday that would potentially delist Chinese stocks from U.S. exchanges.

Crude oil prices drifted lower Friday as concerns about the outlook for energy demand resurfaced due to rising tensions between the U.S. and China over Hong Kong. West Texas Intermediate Crude oil futures for July ended down $0.67 or 2 percent at $33.25 a barrel.

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