logo
Plus   Neg
Share
Email

Rebound Tipped For China Stock Market

The China stock market on Thursday ended the two-day winning streak in which it had advanced almost 35 points or 1.4 percent. The Shanghai Composite Index now rests just beneath the 2,560-point plateau although it may bounce higher again on Friday.

The global forecast for the Asian markets is firm on renewed optimism about and end to the trade dispute between the United States and China. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The SCI finished modestly lower on Thursday following weakness from the oil companies and mixed performances from the financials, properties and insurance stocks.

For the day, the index slid 10.79 points or 0.42 percent to finish at 2,559.64 after trading between 2,557.71 and 2,582.56. The Shenzhen Composite Index dropped 12.38 points or 0.94 percent to end at 1,309.14.

Among the actives, Gemdale perked 1.40 percent, while Poly Developments dropped 0.76 percent, China Vanke tumbled 1.77 percent, CITIC Securities eased 0.45 percent, Industrial and Commercial Bank of China added 0.19 percent, China Merchants Bank skidded 1.42 percent, Bank of China collected 0.28 percent, China Construction Bank gained 0.62 percent, China Life Insurance climbed 1.20 percent, Ping An Insurance eased 0.02 percent, PetroChina shed 0.41 percent, China Petroleum and Chemical (Sinopec) lost 0.56 percent and China Shenhua Energy fell 0.81 percent.

The lead from Wall Street is positive as stocks shook off early weakness and shot higher late Thursday to finish firmly in positive territory.

The Dow added 162.94 points or 0.67 percent to 24,370, while the NASDAQ added 48.77 points or 0.71 percent to 7,084.46 and the S&P 500 rose 19.86 points or 0.76 percent to 2,635.96.

The late-day rally followed reports that the U.S. is considering lifting tariffs on Chinese goods in an effort to calm markets and give Beijing an incentive to make deeper concessions.

The early weakness was a negative reaction to disappointing quarterly results from Morgan Stanley (MS), which missed expectations.

Crude oil prices rebounded after early weakness but still settled lower on Thursday, amid renewed concerns about excess supply and likely fall in near term energy demand. Crude oil futures for February ended down $0.24 or 0.5 percent at $52.07 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT