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China Stock Market May Test Support At 2,900 Points

The China stock market on Thursday snapped the five-day winning streak in which it had advanced more than 85 points or 3 percent. The Shanghai Composite Index now rests just beneath the 2,920-point plateau and the losses could accelerate on Friday.

The global forecast for the Asian markets is soft, with profit taking likely after recent strength. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

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

For the day, the index fell 4.12 points or 0.14 percent to finish at 2,919.25 after trading between 2,910.75 and 2,932.97. The Shenzhen Composite Index added 5.16 points or 0.28 percent to end at 1,852.54.

Among the actives, Industrial and Commercial Bank of China eased 0.19 percent, China Construction Bank shed 0.47 percent, China Merchants Bank fell 0.20 percent, China Life Insurance lost 0.64 percent, Ping An Insurance rose 0.17 percent, PetroChina sank 0.46 percent, China Petroleum and Chemical (Sinopec) skidded 1.18 percent, China Shenhua Energy tumbled 1.68 percent, Gemdale dropped 1.02 percent, Poly Developments retreated 1.05 percent, China Vanke slid 0.41 percent and Bank of China was unchanged.

The lead from Wall Street offers little clarity as stocks turned in a lackluster performance on Thursday before eventually ending the day mixed.

The Dow added 11.93 points or 0.05 percent to finish at 26,281.82, while the NASDAQ shed 67.10 points or 0.69 percent to end at 9,615.81and the S&P 500 fell 10.52 points or 0.34 percent to close at 3,112.35.

The choppy trading on Wall Street came as traders took a breath to digest the recent strength and lock in gains; they also seemed reluctant to make more significant moves ahead of the Labor Department's closely watched monthly jobs report later today.

In economic news, the Labor Department said the pace of decline in first-time claims for unemployment benefits has begun to stall a bit, although there was an unexpected increase in continuing claims.

Earlier in the day, some buying interest was generated in reaction to the European Central Bank announcing additional stimulus to deal with the economic fallout from the coronavirus pandemic.

Crude oil prices edged higher on Thursday after data showed that leading oil producers were in compliance with agreed production cuts. West Texas Intermediate Crude oil futures for July ended up $0.12 or 0.3 percent at $37.41 a barrel.

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