The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day losing streak in which it had fallen more than 15 points or 0.4 percent. The Shanghai Composite Index now rests just above the 3,465-point plateau and it’s likely to remain in that neighborhood again on Friday.
The global forecast for the Asian markets is mixed, with bargain hunting expected after heavy losses in the previous session. The European markets were down and the U.S. bourses were mixed and flat and the Asian markets figure to follow the latter lead.
The SCI finished modestly lower on Thursday following losses from the financials, properties and resource stocks.
For the day, the index sank 19.73 points or 0.57 percent to finish at 3,465.55 after trading between 3,446.01 and 3,480.46. The Shenzhen Composite Index rose 4.74 points or 0.20 percent to end at 2,417.23.
Among the actives, Industrial and Commercial Bank of China shed 0.64 percent, while Bank of China lost 0.66 percent, China Construction Bank skidded 1.00 percent, China Merchants Bank tanked 2.94 percent, Bank of Communications sank 0.68 percent, China Life Insurance tumbled 2.74 percent, Jiangxi Copper plunged 3.71 percent, Aluminum Corp of China (Chalco) surrendered 2.97 percent, Yanzhou Coal spiked 2.27 percent, PetroChina dropped 2.20 percent, China Petroleum and Chemical (Sinopec) plummeted 3.19 percent, China Shenhua Energy fell 0.97 percent, Gemdale weakened 2.22 percent, Poly Developments cratered 3.36 percent and China Vanke was down 2.40 percent.
The lead from Wall Street is uncertain as the major averages opened lower on Thursday but spent the day bouncing back and forth across the unchanged line, eventually ending mixed and little changed.
The Dow lost 66.57 points or 0.19 percent to finish at 34,894.12, while the NASDAQ added 15.87 points or 0.11 percent to end at 14,541 and the S&P rose 5.5 points or 0.13 percent to close at 4,405.80.
The initial downside move on Wall Street came as traders continued to digest the minutes of the Federal Reserve’s latest monetary policy meeting, which note the increased possibility the central bank’s asset purchase program may be scaled back before the end of the year.
Potentially adding evidence to Fed officials’ view that the economy is close to the goal of maximum employment, the Labor Department released a report this morning showing initial jobless claims fell to a new pandemic-era low last week.
Bargain hunting helped to lift the markets as the session progressed.
Crude oil futures fell for a sixth straight session Thursday on worries about the outlook for energy demand after data showed a surprise build in gasoline inventories and continued spikes in coronavirus cases. West Texas Intermediate futures for September ended down $1.77 or 2.7 percent at $63.60 a barrel, a three-month low.
Closer to home, China will see August figures for its one-year and five-year prime loan rates later today; previously, they were 3.85 percent and 4.65 percent, respectively.
Market Analysis
China Stock Market Tipped To Remain Rangebound
2021-08-20 01:00:07
