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Higher Open Anticipated For China Stock Market

The China stock market on Friday ended the eight-day winning streak in which it had accelerated more than 390 points or 12 percent. The Shanghai Composite Index now sits just above the 3,380-point plateau although it's looking at a green light for Monday's trade.

The global forecast for the Asian markets is upbeat on optimism for a treatment for the Covid-19 virus. The European and U.S. markets were firmly higher on Friday and the Asian bourses are tipped to open in similar fashion.

The SCI finished sharply lower on Friday with damage across the board - especially from the financials, properties and oil and insurance companies.

For the day, the index plunged 67.27 points or 1.95 percent to finish at 3,383.32 after trading between 3,372.51 and 3,433.11. The Shenzhen Composite Index fell 6.95 points or 0.31 percent to end at 2,251.00.

Among the actives, Industrial and Commercial Bank of China tanked 2.97 percent, while Bank of China retreated 2.65 percent, China Construction Bank tumbled 4.38 percent, China Merchants Bank sank 3.77 percent, China Life Insurance plummeted 7.05 percent, Ping An Insurance plunged 4.17 percent, PetroChina surrendered 2.95 percent, China Petroleum and Chemical (Sinopec) lost 2.36 percent, China Shenhua Energy declined 3.40 percent, Gemdale fell 4.27 percent, Poly Developments slid 3.81 percent and China Vanke was down 4.77 percent.

The lead from Wall Street is positive as stocks showed a strong move to the upside on Friday, denting losses from the previous session.

The Dow jumped 369.21 points or 1.44 percent to finish at 26,075.30, while the NASDAQ added 69.69 points or 0.66 percent to end at 10,617.44 and the S&P 500 advanced 32.99 points or 1.05 percent to close at 3,185.04.

The strength on Wall Street came after Gilead Sciences (GILD) said remdesivir showed a sharp mortality risk drop when used to treat patients suffering of coronavirus. Also, BioNTech's CEO told The Wall Street Journal the German biotechnology company's coronavirus vaccine candidate could see approval by December.

The upbeat treatment and vaccine news overshadowed the news that the U.S. reported a record daily increase in new coronavirus cases of more than 63,000.

Crude oil futures rebounded on Friday thanks to an upward revision in the energy demand forecast by the International Energy Agency. West Texas Intermediate Crude oil futures for August ended up $0.93 or 2.4 percent at $40.55 a barrel.

Closer to home, China will release June figures for foreign direct investment later today; in May, FDI was down 3.8 percent on year.

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