The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had jumped almost 100 points or 3 percent. The Shanghai Composite index now sits just beneath the 3,465-point plateau although it may turn lower again on Friday.
The global forecast for the Asian markets is broadly negative thanks to a spike in bond yields and plummeting oil prices. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.
The SCI finished modestly higher on Thursday following mixed performances from the financial shares, property stocks and resource companies.
For the day, the index rose 17.52 points or 0.51 percent to finish at 3,463.07 after trading between 3,449.38 and 3,478.14. The Shenzhen Composite Index gained 19.24 points or 0.87 percent to end at 2,237.50.
Among the actives, Industrial and Commercial Bank of China dropped 0.90 percent, while Bank of China shed 0.30 percent, China Construction Bank lost 0.40 percent, China Merchants Bank jumped 1.57 percent, Bank of Communications fell 0.21 percent, China Life Insurance collected 0.53 percent, Jiangxi Copper skidded 1.36 percent, Aluminum Corp of China (Chalco) sank 0.93 percent, Yanzhou Coal slid 0.31 percent, Baoshan Iron rallied 2.76 percent, PetroChina slid 0.68 percent, China Petroleum and Chemical (Sinopec) was down 0.45 percent, Huaneng Power advanced 0.92 percent, China Shenhua Energy, Gemdale added 0.62 percent, Poly Developments lost 0.46 percent, China Vanke eased 0.03 percent and China Fortune Land plunged 3.21 percent.
The lead from Wall Street is soft as stocks opened mixed on Thursday but turned firmly negative as the day progressed – particularly among technology stocks.
The Dow tumbled 153.07 points or 0.46 percent to finish at 32,862.30, while the NASDAQ plummeted 409.03 points or 3.02 percent to end at 13,116.17 and the S&P 500 sank 58.66 points or 1.48 percent to close at 3,915.46.
The weakness on Wall Street came as another spike in treasury yields renewed concerns about the outlook for high-growth companies. The yield on the benchmark ten-year note jumped above 1.7 percent to reach its highest levels since January of 2020, while the thirty-year bond yield shot up to its highest levels since last summer.
Yields skyrocketed despite assurances by the Federal Reserve that interest rates will remain at near-zero levels through 2023. Analysts attributed the jump in yields to concerns that the Fed’s apparent willingness to let inflation accelerate more than normal will reduce the appeal of bonds.
In economic news, the Labor Department noted an unexpected increase in first-time claims for U.S. unemployment benefits last week thanks to the winter storm in Texas. Also, the Philadelphia Federal Reserve said its reading on regional manufacturing spiked to a 50-year high in March.
Crude oil prices declined sharply on Thursday on concerns about the outlook for energy demand due to uncertainty about the pace of the economic recovery. West Texas Intermediate Crude oil futures for April ended down $4.60 or 7.1 percent at $60.00 a barrel.
Market Analysis
China Stock Market Poised To Open Under Pressure
2021-03-19 01:00:17
