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China Stock Market May Run Out Of Steam On Monday

The China stock market has finished higher in consecutive trading days, collecting almost 30 points or 0.8 percent along the way. The Shanghai Composite Index now rests just above the 3,700-point plateau although it may be stuck in neutral on Monday.

The global forecast for the Asian markets is soft on ongoing coronavirus concerns. The European markets were mixed and little changed and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished modestly higher on Friday as gains from the financial shares and property stocks were offset by weakness from the energy producers and resource companies.

For the day, the index gained 9.98 points or 0.27 percent to finish at 3,703.11 after trading between 3,681.64 and 3,722.87. The Shenzhen Composite Index rose 7.74 points or 0.31 percent to end at 2,502.02.

Among the actives, Industrial and Commercial Bank of China advanced 0.84 percent, while Bank of China collected 0.32 percent, China Construction Bank added 0.64 percent, China Merchants Bank soared 3.88 percent, Bank of Communications gained 0.44 percent, China Life Insurance climbed 1.15 percent, Jiangxi Copper jumped 1.71 percent, Aluminum Corp of China (Chalco) skidded 1.06 percent, Yanzhou Coal shed 0.41 percent, PetroChina retreated 1.52 percent, China Petroleum and Chemical (Sinopec) tanked 2.15 percent, China Shenhua Energy cratered 6.63 percent, Anhui Conch Cement spiked 3.28 percent, Huaneng Power plunged 2.87 percent, Gemdale surged 3.93 percent, Poly Developments rallied 3.15 percent, China Vanke improved 0.99 percent and China Fortune Land was up 0.72 percent.

The lead from Wall Street is negative spent Friday's session bouncing back and forth across the unchanged line before finally ending in the red, extending recent losses.

The Dow shed 271.68 points or 0.78 percent to finish at 34,607.72, while the NASDAQ lost 132.81 points or 0.87 percent to end at 15,115.49 and the S&P 500 fell 34.70 points or 0.77 percent to close at 4,458.58. For the week, the Dow lost 2.2 percent, the NASDAQ sank 1.6 percent and the S&P fell 1.7 percent.

Some initial strength on Wall Street came on bargain hunting, but buying interest quickly waned as traders continued to express concerns about the economic impact of the delta variant.

Traders may also have been wary of buying stocks ahead of the Federal Reserve's next monetary policy meeting later this month. The Fed may provide an update on the plans for its asset purchase program, although recent signs of slowing economic momentum could lead the central bank to push back tapering.

In U.S. economic news, the Labor Department reported that producer prices increased by slightly more than expected in August.

Crude oil futures settled sharply higher Friday on signs of a drop in crude supply in the U.S. due to the impact of Hurricane Ida. West Texas Intermediate Crude oil futures for October ended up $1.58 or 2.3 percent at $69.72 a barrel. WTI crude futures gained 0.6 percent for the week.

Closer to home, China will release August data for foreign direct investment later today; in July, FDI spiked 25.5 percent on year.

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