The China stock market on Thursday wrote a finish to the three-day losing streak in which it had stumbled almost 50 points or 1.4 percent. The Shanghai Composite Index now rests just above the 3,525-point plateau and it’s tipped to open in the green again on Friday.
The global forecast for the Asian markets suggests lid upside, with optimism over interest rates offset by weakness from crude oil prices. The European markets were up and the U.S. markets were mixed and the Asian markets figure to split the difference.
The SCI finished modestly higher on Thursday as gains from the financials were offset by weakness from the resource and property stocks.
For the day, the index advanced 28.33 points or 0.81 percent to finish at 3,526.87 after trading between 3,503.01 and 3,527.95. The Shenzhen Composite Index jumped 31.56 points or 1.32 percent to end at 2,425.16.
Among the actives, Industrial and Commercial Bank of China rose 0.22 percent, while China Construction Bank fell 0.34 percent, China Merchants Bank was up 0.10 percent, Bank of Communications collected 0.66 percent, China Life Insurance skidded 1.12 percent, Jiangxi Copper sank 0.81 percent, Aluminum Corp of China (Chalco) tanked 2.51 percent, Yanzhou Coal retreated 1.64 percent, PetroChina tumbled 2.12 percent, China Petroleum and Chemical (Sinopec) fell 0.24 percent, Huaneng Power surrendered 2.09 percent, China Shenhua Energy perked 0.20 percent, Gemdale declined 1.50 percent, Poly Developments plunged 2.25 percent, China Vanke gathered 0.06 percent, Beijing Capital Development lost 1.26 percent and Bank of China was unchanged.
The lead from Wall Street is inconsistent as the NASDAQ and S&P 500 both opened higher and stayed that way to hit fresh record closing highs, while the Dow opened lower and remained in the red throughout the session.
The Dow shed 33.35 points or 0.09 percent to finish at 36,124.23, while the NASDAQ jumped 128.72 points or 0.81 percent to close at 15.940.31 and the S&P added 19.49 points or 0.42 percent to end at 4,680.06.
Another batch of earnings news was a driving factor as strong results from chipmaker Qualcomm (QCOM) helped to send the NASDAQ higher, while losses by Dow Inc. (DOW), Goldman Sachs (GS) and Travelers (TRV) contributed to the modest pullback by the Dow.
Traders also continued to react positively to the Federal Reserve’s latest monetary policy announcement, with the central bank announcing plans to scale back its asset purchases but signaling it won’t be in a hurry to begin raising interest rates.
In economic news, the Labor Department noted a modest decrease in first-time claims for U.S. unemployment benefits last week. Also, the Commerce Department said the U.S. trade deficit widened much more than expected in September.
Crude oil prices tumbled and settled at their lowest level in nearly a month on Thursday after OPEC decided to stick with its plan to raise oil output modestly and gradually. West Texas Intermediate Crude oil futures for December ended lower by $2.05 or 2.5 percent at $78.81 a barrel.
Market Analysis
Higher Open Anticipated For China Stock Market
2021-11-05 01:03:31
