China Stock Market May Spin Its Wheels On Friday

The China stock market rebounded on Thursday, one session after halting the two-day winning streak in which it had gathered almost 100 points or 0.8 percent. The Shanghai Composite Index now rests just above the 3,690-point plateau although it may be stuck in neutral on Friday.

The global forecast for the Asian markets is mixed to lower, thanks to coronavirus concerns and sinking crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished modestly higher on Thursday following gains from the resource and energy stocks, while the financials and properties were mixed.

For the day, the index gained 17.94 points or 0.49 percent to finish at 3,693.13 after trading between 3,662.16 and 3,693.45. The Shenzhen Composite Index rose 1.68 points or 0.07 percent to end at 2,494.28.

Among the actives, Industrial and Commercial Bank of China shed 0.42 percent, while Bank of China fell 0.32 percent, China Construction Bank collected 0.16 percent, China Merchants Bank lost 0.59 percent, China Life Insurance dropped 0.85 percent, Jiangxi Copper surged 5.72 percent, Aluminum Corp of China (Chalco) soared 4.68 percent, Yanzhou Coal and China Shenhua Energy both skyrocketed 10.0 percent, PetroChina perked 2.13 percent, China Petroleum and Chemical (Sinopec) rallied 2.65 percent, Gemdale slid 0.44 percent, Poly Developments climbed 1.34 percent, China Vanke sank 0.64 percent, Beijing Capital Development advanced 1.11 percent and Bank of Communications was unchanged.

The lead from Wall Street is negative as the major averages opened higher on Thursday but fell into the red midway through the session and ended that way.

The Dow dropped 151.69 points or 0.43 percent to finish at 34,879.38, while the NASDAQ shed 38.38 points or 0.25 percent to close at 15,248.25 and the S&P 500 fell 20.79 points or 0.46 percent to end at 4,493.28.

The early strength on Wall Street came after the Labor Department released a report showing a bigger than expected decrease in first-time claims for U.S. unemployment benefits last week.

Buying interest waned over the course of the session, however, with traders expressing continued concerns about the impact of the rapid spread of the delta variant of the coronavirus.

Uncertainty about the outlook for monetary policy also weighed on the markets ahead of the next Federal Reserve meeting later this month.

Crude oil futures settled sharply lower Thursday, weighed down by reports that China is looking to release some crude stock from its national reserve. West Texas Intermediate Crude oil futures for October ended down by $1.16 or 1.7 percent at $68.14 a barrel.

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