Chinese stock market expected to end its fall on Monday

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(RTTNews) – The Chinese stock market has fallen in two consecutive sessions, losing more than 15 points or 0.4% along the way. The Shanghai Composite Index now sits just above the 3,515 point plateau, although it may find support on Monday.

Global forecasts for Asian markets are cautiously optimistic, with news on earnings and bargain hunting potentially being limited by falling crude oil prices and soaring coronavirus cases. European and US markets were slightly higher and Asian stock markets are expected to follow suit.

The SCI ended slightly lower on Friday following the losses of oil companies and the mixed performance of financials and real estate.

For the day, the index lost 8.44 points or 0.24% to end at 3,516.30 after trading between 3,500.80 and 3,540.08. The Shenzhen Composite Index fell 9.60 points or 0.39% to end at 2,468.74.

Among assets, Industrial and Commercial Bank of China lost 0.43%, while Bank of China collected 0.33%, China Construction Bank fell 0.34%, China Merchants Bank rose 0.99% , China Life Insurance rose 0.21%, Jiangxi Copper fell 0.90%, Aluminum Corp of China (Chalco) rose 1.29%, Yanzhou Coal fell 1.92%, PetroChina fell 1.09%, China Petroleum and Chemical (Sinopec) fell 1.23%, China Shenhua Energy rose 0.39%, Gemdale jumped 1.56%, Poly Developments fell 3.22% , China Vanke gained 0.66%, China Fortune Land sank 0.93% and Bank of Communications was unchanged.

Wall Street’s lead suggests a slight rise as major averages opened mixed on Friday, but all managed to end slightly higher.

The Dow Jones added 15.53 points or 0.04% to close at 35,515.38, while the NASDAQ rose 6.64 points or 0.04% to close at 14,822.90 and the S&P 500 a added 7.17 points or 0.16% to end at 4,468.00. For the week, the Dow Jones rose 0.9%, the NASDAQ fell 0.1%, and the S&P rose 0.7%.

Corporate results have backed up, led by Walt Disney, which posted better-than-expected quarterly results and strong growth in its customer base.

In economic news, the preliminary report from the University of Michigan indicates that the US consumer confidence index has fallen to an almost 10-year low. Additionally, the Labor Department said import and export prices were both increasing more than expected.

Crude oil futures stabilized lower on Friday as traders assessed the outlook for energy demand amid peaks in the delta variant of the coronavirus in several countries. West Texas Intermediate crude oil futures for September ended down $ 0.65 or 0.9% at $ 68.44 a barrel.

Closer to home, China will provide July figures for industrial production, retail sales, capital investment and unemployment later this morning.

Industrial production should gain 7.8% year on year, against 8.3% in June. Retail sales are expected to rise 11.5% per year, down from 12.1% the previous month. FAI is expected to grow 11.3% year on year, compared to 12.6% a month earlier. The unemployment rate in June was 5.0%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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