(RTTNews) – The China stock market has moved higher in two of three trading days since the end of the two-day losing streak in which it had fallen almost 20 points or 0.6 percent. The Shanghai Composite Index now rests just above the 3,560-point plateau although it’s expected to see renewed consolidation on Monday.
The global forecast for the Asian markets is negative on renewed COVID-19 concerns and the resulting drop in crude oil prices. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SCI finished sharply higher on Friday following gains from the financials, properties and resource stocks.
For the day, the index jumped 39.66 points or 1.13 percent to finish at 3,560.37 after trading between 3,517.65 and 3,561.91. The Shenzhen Composite Index advanced 29.41 points or 1.20 percent to end at 2,490.27.
Among the actives, Industrial and Commercial Bank of China collected 0.43 percent, while China Construction Bank rose 0.17 percent, China Merchants Bank jumped 1.79 percent, Bank of Communications advanced 0.87 percent, China Life Insurance climbed 1.41 percent, Jiangxi Copper rallied 2.17 percent, Aluminum Corp of China (Chalco) spiked 2.30 percent, Yanzhou Coal increased 1.20 percent, PetroChina improved 1.26 percent, China Petroleum and Chemical (Sinopec) accelerated 2.45 percent, Huaneng Power perked 0.68 percent, China Shenhua Energy gathered 1.26 percent, Gemdale surged 4.95 percent, Poly Developments skyrocketed 7.29 percent, China Vanke soared 4.24 percent, China Fortune Land was up 2.90 percent and Bank of China was unchanged.
The lead from Wall Street is mixed as the Dow opened lower on Friday and stayed that way and the NASDAQ opened higher and closed at a record high. The S&P 500 opened slightly lower, bounced back and forth across the unchanged line and ended slightly in the red.
The Dow dropped 268.92 points or 0.75 percent to finish at 35,601.98, while the NASDAQ added 63.74 points or 0.40 percent to close at 16,057.44 and the S&P 500 eased 6.58 points or 0.14 percent to end at 4,697.96. For the week, the NASDAQ jumped 1.2 percent, the S&P rise 0.3 percent and the Dow lost 1.4 percent.
Renewed COVID-19 concerns weighed on cyclical stocks as a brutal fourth wave of the coronavirus pandemic sweeps across Europe. Austria has announced a full national COVID-19 lockdown starting today, while Germany has announced more restrictions on unvaccinated people.
The potential of more European countries reinstating full lockdowns sparked worries the pandemic could once again weigh down the global economy.
Meanwhile, the tech-heavy NASDAQ benefitted from continued strength among technology stocks following some upbeat earnings news from companies such as software firm Intuit (INTU) and cybersecurity company Palo Alto Networks (PANW).
Crude oil prices plunged sharply on Friday amid rising concerns about the outlook for energy demand following a surge in COVID-19 cases and fresh restrictions in some European countries. West Texas Intermediate Crude oil futures for December settled at $75.94 a barrel, losing $2.47 or 3.2 percent.
Closer to home, China will release the prime rates for one-year and five-year loans later this morning; previously, they were 3.85 percent and 4.65 percent, respectively.