The China stock market has climbed higher in four straight sessions, advancing almost 125 points or 3.7 percent along the way. The Shanghai Composite Index now rests just beneath the 3,610-point plateau although it’s looking at a soft start on Friday.
The global forecast for the Asian markets is mixed and flat ahead of key inflation data from the United States later in the day. The European and U.S. markets were mixed and little changed and the Asian markets figure to follow suit.
The SCI finished modestly higher on Thursday following gains from the resource stocks, weakness from the financials and a mixed picture from the properties.
For the day, the index collected 15.49 points or 0.43 percent to finish at 3,608.85 after trading between 3,579.26 and 3,626.36. The Shenzhen Composite Index gained 18.71 points or 0.79 percent to end at 2,399.27.
Among the actives, Bank of China shed 0.30 percent, while China Construction Bank lost 0.71 percent, China Merchants Bank dropped 0.94 percent, Bank of Communications fell 0.61 percent, China Life Insurance slid 0.38 percent, Jiangxi Copper retreated 0.93 percent, Aluminum Corp of China (Chalco) added 0.57 percent, Yanzhou Coal climbed 1.36 percent, PetroChina skidded 0.85 percent, China Shenhua Energy improved 0.76 percent, Gemdale was down 0.80 percent, Poly Developments perked 0.29 percent, China Vanke eased 0.07 percent, China Fortune Land skyrocketed 10.10 percent and Industrial and Commercial Bank of China, China Petroleum and Chemical (Sinopec) and Beijing Capital Development were unchanged.
The lead from Wall Street is conflicted as the Dow and S&P both opened in the green on Friday and finished the same way, while the NASDAQ saw a soft start and ended barely lower.
The Dow climbed 141.59 points or 0.41 percent to finish at 34,464.64, while the NASDAQ eased 1.72 points or 0.01 percent to close at 13,736.28 and the S&P 500 rose 4.89 points or 0.12 percent to end at 4,200.88.
The lackluster performance came as traders continued to look ahead to a highly anticipated reading on inflation later today. The inflation reading is said to be preferred by the Federal Reserve and could have a significant impact on the outlook for monetary policy.
Traders were also digesting a report from the Labor Department showing weekly jobless claims once again fell to a new pandemic-era low. The continued decrease in jobless claims paints a positive picture of the labor market but also raised concerns that the Fed will move closer to tapering its asset purchases in the near future.
Also, the Commerce Department showed an unexpected pullback in durable goods orders in April, and a separate report noted that the pace of U.S. economic growth in the first quarter was unrevised from the advance estimate.
Crude oil prices moved higher on Thursday, extending gains to a fifth straight session on following a drop in U.S. crude inventories. West Texas Intermediate Crude oil futures for July ended up $0.64 or 1 percent at $66.85 a barrel.
Market Analysis
Profit Taking Expected For China Stock Market
2021-05-28 01:00:11
