China Shares Expected To Be Rangebound On Friday

The China stock market on Thursday ended the three-day winning streak in which it had advanced almost 60 points or 2 percent. The Shanghai Composite Index now rests just beneath the 3,055-point plateau although it may remain stuck in neutral on Friday.

The global forecast is murky amidst uncertainties about interest rates and economic growth. The European markets were down and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The SCI finished slightly lower on Thursday following losses from the financial shares, resource and energy stocks and properties.

For the day, the index eased 3.71 points or 0.12 percent to finish at 3,054.99 after trading between 3,032.95 and 3,072.16. The Shenzhen Composite Index added 3.14 points or 0.16 percent to end at 1,921.66.

Among the actives, Industrial and Commercial Bank of China dipped 0.21 percent, while China Merchants Bank retreated 1.61 percent, Bank of Communications sank 0.81 percent, China Life Insurance and Jiangxi Copper both shed 0.59 percent, Aluminum Corp of China (Chalco) stumbled 1.74 percent, Yankuang Energy dropped 0.96 percent, PetroChina declined 1.16 percent, China Petroleum and Chemical (Sinopec) fell 0.47 percent, Huaneng Power tanked 2.32 percent, Anhui Conch Cement skidded 1.10 percent, China Shenhua Energy tumbled 2.05 percent, Gemdale surrendered 2.01 percent, Poly Developments slumped 1.45 percent, China Vanke plunged 2.60 percent, China Fortune Land plummeted 2.50 percent and Bank of China and China Construction Bank were unchanged.

The lead from Wall Street offers little clarity as the major averages opened lower on Thursday and spent much of the day bouncing back and forth across the unchanged line before finally ending mixed and little moved.

The Dow dropped 103.81 points or 0.33 percent to finish at 31,730.30, while the NASDAQ rose 6.73 points or 0.06 percent to close at 11,370.96 and the S&P 500 fell 5.10 points or 0.13 percent to end at 3,930.08.

The volatility on Wall Street came as traders continued to debate whether the markets have hit their bottom, with the major averages falling to their worst levels in over a year.

However, recent bargain hunting efforts have largely been thwarted by worries about the Federal Reserve aggressively raising interest rates in an effort to combat elevated inflation.

Adding to the worries, the Labor Department reported that the annual rate of producer price growth slowed less than expected in April. Also, the Labor Department unexpectedly showed a slight increase in first-time claims for U.S. unemployment benefits last week.

Crude oil futures ended modestly higher on Thursday as the European Union's proposal to ban Russian oil offset concerns of prolonged Covid-19 lockdowns in China. West Texas Intermediate Crude oil futures for June ended higher by $0.42 or 0.4 percent at $106.13 a barrel.

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