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Renewed Consolidation Predicted For China Shares

The China stock market bounced higher again on Thursday, one session after it had halted the two-day winning streak in which it had collected more than 30 points or 1 percent. The Shanghai Composite Index now rests just above the 2,845-point plateau although it's likely to head south again on Friday.

The global forecast for the Asian markets is soft on renewed geopolitical concerns between the United States and China. The European markets were up and the U.S. bourses were down and the Asian markets are expected to follow the latter lead.

The SCI finished modestly higher on Thursday as gains from the financial shares and properties were capped by weakness from the energy producers.

For the day, the index collected 9.42 points or 0.33 percent to finish at 2,846.22 after trading between 2,820.15 and 2,861.92. The Shenzhen Composite Index fell 4.52 points or 0.25 percent to end at 1,769.70.

Among the actives, Industrial and Commercial Bank of China advanced 0.98 percent, while Bank of China collected 0.58 percent, China Construction Bank added 0.78 percent, China Merchants Bank soared 2.36 percent, China Life Insurance jumped 1.48 percent, Ping An Insurance climbed 1.22 percent, PetroChina shed 0.46 percent, China Shenhua Energy eased 0.06 percent, Gemdale accelerated 1.42 percent, Poly Developments gained 0.65 percent, China Vanke increased 0.93 percent and China Petroleum and Chemical (Sinopec) was unchanged.

The lead from Wall Street is negative as stocks opened higher on Thursday and stayed that way through much of the session before falling under pressure late and ending in the red.

The Dow shed 147.63 points or 0.58 percent to finish at 25,400.64, while the NASDAQ lost 43.37 points or 0.46 percent to end at 9,368.99 and the S&P 500 fell 6.40 points or 0.21 percent to close at 3,029.73.

The late-day pullback on Wall Street was attributed to President Donald Trump announcing plans to hold a news conference about China later today. China has recently stepped up efforts to curtail Hong Kong's independence, raising concerns that Trump may announce new measures that ramp up recent tensions with China.

The strength seen for much of the day came following the release of a report from the Labor Department showing a continued decrease in first-time claims for unemployment benefits last week.

Crude oil prices moved higher on Thursday, driven by a drop in gasoline inventories in the U.S. amid an increase in demand thanks to reopening of businesses in almost all the states in the country. West Texas Intermediate Crude oil futures for July ended up $0.90 or 2.7 percent at $33.71 a barrel.

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