China Stock Market Has A Red Light For Monday's Trade

The China stock market has moved lower in four straight sessions, sinking almost 60 points or 1.7 percent along the way. The Shanghai Composite Index now rests just beneath the 3,580-point plateau and it's expected to open under pressure again on Monday.

The global forecast for the Asian markets suggests mild consolidation following Friday's mixed jobs report from the United States. The European markets were mixed and the U.S. bourse were down and the Asian markets figure to split the difference.

The SCI finished slightly lower on Friday as gains from the financials and properties were tempered by mixed performances from the resource stocks and energy producers.

For the day, the index dipped 6.54 points or 0.18 percent to finish at 3,579.54 after trading between 3,577.10 and 3,607.23. The Shenzhen Composite Index sank 28.51 points or 1.15 percent to end at 2,452.82

Among the actives, Industrial and Commercial Bank of China collected 0.85 percent, while Bank of China jumped 1.62 percent, China Construction Bank climbed 1.49 percent, China Merchants Bank spiked 1.87 percent, Bank of Communications rallied 1.72 percent, China Life Insurance advanced 1.16 percent, Jiangxi Copper was up 0.18 percent, Aluminum Corp of China (Chalco) accelerated 2.22 percent, Yankuang Energy tanked 2.94 percent, PetroChina surged 5.82 percent, China Petroleum and Chemical (Sinopec) and Beijing Capital Development both improved 1.87 percent, Huaneng Power plunged 4.20 percent, China Shenhua Energy gathered 1.31 percent, Gemdale strengthened 3.23 percent, Poly Developments soared 4.13 percent and China Vanke gained 3.99 percent.

The lead from Wall Street is soft as the major averages opened lower on Friday and then saw wild swings both ways before finally finishing the session in the red.

The Dow dipped 4.84 points or 0.01 percent to finish at 36,231,66, while the NASDAQ sank 145.00 points or 0.96 percent to end at 14,935.90 and the S&P 500 fell 19.02 points or 0.41 percent to close at 4,677.03. For the week, the NASDAQ plunged 4.5 percent, the S&P slumped 1.9 percent and the Dow dipped 0.3 percent.

The continued pullback on Wall Street followed the release of the Labor Department's closely watched monthly jobs report. While the report showed much weaker than expected job growth in the month of December, the unemployment rate still fell by more than expected.

Economists have indicated the report is not likely to alter the Fed's plans to accelerate monetary policy normalization.

Traders subsequently seem concerned the Fed will be raising rates at a time of slowing economic growth as a result of the Omicron variant of the coronavirus.

Crude oil prices drifted lower on Friday, but still finished the week with a strong gain on supply concerns amid escalating unrest in Kazakhstan and outages in Libya. West Texas Intermediate Crude oil futures for February ended down by $0.56 or 0.7 percent at $78.90 a barrel. WTI Crude futures gained 4.9 percent in the week.

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