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China Stock Market May Reclaim 2,900-Point Level

The China stock market has climbed higher in two of three trading days since the end of the four-day losing streak in which it had stumbled almost 175 points or 5.8 percent. The Shanghai Composite Index now rests just beneath the 2,890-point plateau and it may see continued support on Monday.

The global forecast is positive thanks mainly to a surge in crude oil prices, while bargain hunting may also be in order. The European and U.S. markets were mostly in the green on Friday and the Asian markets are expected to follow that lead.

The SCI finished modestly higher on Friday following gains from the property stocks and mixed performances from the financials and oil companies.

For the day, the index picked up 13.95 points or 0.49 percent to finish at 2,889.76 after trading between 2,837.14 and 2,891.97. The Shenzhen Composite Index spiked 19.06 points or 1.21 percent to end at 1,597.39.

Among the actives, Industrial and Commercial Bank of China shed 0.18 percent, while China Construction Bank collected 0.14 percent, China Merchants Bank lost 0.10 percent, Bank of China was unchanged, China Life skidded 1.30 percent, Ping An Insurance eased 0.03 percent, China Petroleum and Chemical (Sinopec) tumbled 2.18 percent, PetroChina added 0.41 percent, China Shenhua Energy fell 0.76 percent, China Vanke jumped 1.33 percent and Gemdale advanced 1.34 percent.

The lead from Wall Street is cautiously optimistic as stocks moved mostly higher on Friday, although the NASDAQ ended in the red. The gains by the Dow allowed the blue chip index to avoid its longest losing streak in over forty years.

The Dow added 119.19 points or 0.49 percent to 24,580.89, while the NASDAQ fell 20.14 points or 0.26 percent to 7,692.82 and the S&P 500 rose 5.13 points or 0.19 percent to 2,754.89. For the week, the Dow slumped 2 percent, the NASDAQ lost 0.7 percent and the S&P slid 0.9 percent.

A rally by energy stocks fueled to the strength on Wall Street, as the price of crude oil spiked on news out of the closely watched OPEC meeting in Vienna. Reports said OPEC planned to increase oil production by about 1 million barrels per day, although a specific figure was not provided.

The uncertainty generated by the statement contributed to a sharp increase by the price of crude oil, with crude for August delivery soared $3.04 or 4.6 percent to $68.58 a barrel.

Traders largely shrugged off lingering trade concerns even as President Donald Trump threatened to impose a 20 percent tariff on all cars imported to the U.S. from the European Union.

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