Rebound Anticipated For China Stock Market

(RTTNews) – The China stock market has finished lower in two of three trading days since the end of the four-day winning streak in which it had jumped more than 140 points or 4.4 percent. The Shanghai Composite Index now sits just beneath the 3,390-point plateau although it figures to bounce higher again on Monday.

The global forecast for the Asian markets is upbeat, with bargain hunting expected after heavy selling last week, especially among the oil and technology stocks. The European markets were mixed and flat and the US bourses were up and the Asian markets figure to split the difference.

The SCI finished slightly lower on Friday following losses from the resource and energy companies, while the financials and properties were mixed.

For the day, the index shed 10.98 points or 0.32 percent to finish at 3,387.64 after trading between 3,378.36 and 3,404.05. The Shenzhen Composite Index fell 4.74 points or 0.21 percent to end at 2,219.41.

Among the actives, China Construction Bank collected 0.33 percent, while China Merchants Bank tumbled 1.94 percent, Bank of Communications rose 0.20 percent, China Life Insurance fell 0.26 percent, Jiangxi Copper lost 0.62 percent, Aluminum Corp of China (Chalco) slid 0.21 percent, Yankuang Energy dipped 0.20 percent, PetroChina shed 0.57 percent, Huaneng Power strengthened 1.56 percent, China Shenhua Energy sank 0.54 percent, Gemdale plunged 2.53 percent, Poly Developments improved 0.34 percent, China Vanke slumped 0.49 percent, China Fortune Land retreated 1.25 percent, Beijing Capital Development skyrocketed 6.31 percent and Industrial and Commercial Bank of China, Bank of China and China Petroleum and Chemical (Sinopec) were unchanged.

The lead from Wall Street is positive as stocks shook off early listlessness on Friday, accelerating in the second half to finish near session highs.

The Dow spiked 321.86 points or 1.05 percent to finish at 31,097.26, while the NASDAQ jumped 99.14 points or 0.90 percent to close at 11,127.84 and the S&P 500 soared 39.95 points or 1.06 percent to end at 3,825.33.

For the week, the NASDAQ plunged 4.1 percent, the S&P declined 2.2 percent and the Dow dropped 1.3 percent.

The higher close on Wall Street came as traders went bargain hunting following early session selling. Concerns about the possibility of tighter monetary policy triggering a global recession also weigh on the markets in early trading.

Stocks fell under pressure following a report from the Institute for Supply Management showing US manufacturing activity slowed more than expected in June, while a separate report from the Commerce Department showed US construction spending unexpectedly edged lower in May.

Crude oil prices moved higher Friday on concerns about supply outages in Libya and shutdowns in Norway caused by striking workers. West Texas Intermediate Crude oil futures for August ended higher by $2.67 or 2.5 percent at $108.43 a barrel. WTI crude oil futures rose 1 percent in the week.

The views and opinions expressed in are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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