The China stock market on Thursday halted the four-day winning streak in which it had gathered more than 80 points or 2.6 percent. The Shanghai Composite Index now sits just beneath the 3,240-point plateau and the losses may accelerate on Friday.
The global forecast for the Asian markets is soft on concerns for inflation and economic growth. The European and U.S. markets were firmly lower and the Asian bourses are tipped to open in similar fashion.
The SCI finished modestly lower on Thursday following energy companies and resource stocks, gains from the financials and a mixed picture from the property sector.
For the day, the index dropped 24.84 points or 0.76 percent to finish at 3,238.95 after trading between 3,223.48 and 3,270.56. The Shenzhen Composite Index tumbled 37.73 points or 1.81 percent to end at 2,045.70.
Among the actives, Industrial and Commercial Bank of China collected 0.43 percent, while Bank of China gained 0.63 percent, China Construction Bank added 0.51 percent, China Merchants Bank jumped 1.92 percent, Bank of Communications improved 0.61 percent, China Minsheng Bank advanced 0.79 percent, China Life Insurance climbed 1.03 percent, Jiangxi Copper fell 0.32 percent, Aluminum Corp of China (Chalco) tanked 2.50 percent, Yankuang Energy rose 0.16 percent, PetroChina rallied 2.84 percent, China Petroleum and Chemical (Sinopec) perked 0.22 percent, Huaneng Power plummeted 9.93 percent, China Shenhua Energy skidded 1.02 percent, Gemdale spiked 2.68 percent, Poly Developments surged 3.32 percent, China Vanke soared 1.65 percent, Chin Fortune Land tumbled 2.15 percent and Beijing Capital Development lost 0.63 percent.
The lead from Wall Street broadly negative as the major averages opened slightly lower on Thursday but the losses accelerated sharply in the final hour of trade, sending them deep into the red at the finish.
The Dow plunged 638.11 points or 1.94 percent to finish at 32,272.79, while the NASDAQ plummeted 332.04 points or 2.75 percent to end at 11,754.23 and the S&P 500 sank 97.95 points or 2.38 percent to close at 4,017.82.
The sell-off on Wall Street came as traders looked ahead to the release of a Labor Department report on consumer price inflation later today. The report is expected to show that consumer prices increased by 0.7 percent in May after rising by 0.3 percent in April.
The inflation data could have an impact on the outlook for monetary policy ahead of the Federal Reserve’s decision on interest rates next Wednesday.
On the economic front, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rose by more than expected in the week ended June 4th.
Crude oil prices drifted lower on Thursday as demand concerns resurfaced following authorities in Shanghai imposing new Covid-related restrictions. West Texas Intermediate Crude oil futures for July ended down by $0.60 or 0.5 percent at $121.51 a barrel.
Closer to home, China will release May figures for consumer prices later today. Inflation is expected to fall 0.3 percent on month and rise 2.2 percent on year after adding 0.4 percent on month and 2.1 percent on year in April. Producer prices are expected to climb an annual 6.4 percent, slowing from 8.0 percent in the previous month.
China also will see May data for new yuan loans, with forecasts coming in at CNY1,275 billion – up from 645.4 billion in April.
Market Analysis
China Stock Market Predicted To Open In The Red
2022-06-10 01:00:11
