Chinese stock market has a red light for Monday trading
(RTTNews) – The Chinese stock market has fallen in four consecutive sessions, losing nearly 60 points or 1.7% along the way. The Shanghai Composite Index now sits just below the 3,580 point plateau and is expected to open again under pressure on Monday.
Global forecasts for Asian markets suggest slight consolidation after Friday’s mixed US employment report. European markets were mixed and the US stock market was down and Asian markets were counting to divide the difference.
The SCI ended slightly lower on Friday as gains in financials and real estate stocks were tempered by mixed performance from resource stocks and energy producers.
For the day, the index lost 6.54 points or 0.18% to end at 3,579.54 after trading between 3,577.10 and 3,6072.23. The Shenzhen Composite Index fell 28.51 points or 1.15% to close at 2,452.82 among assets, the Industrial and Commercial Bank of China collected 0.85%, while the Bank of China surged 1.62%, China Construction Bank rose 1.49%, China Merchants Bank rose 1.87%, Bank of Communications rose 1.72%, China Life Insurance rose 1.16 %, Jiangxi Copper by 0.18%, Aluminum Corp of China (Chalco) accelerated 2.22%, Yankuang Energy was down 2.94%, PetroChina jumped 5.82%, China Petroleum and Chemical (Sinopec ) and Beijing Capital Development both improved 1.87%, Huaneng Power plunged 4.20%, China Shenhua Energy rose 1.31%, Gemdale strengthened 3.23%, Poly Developments climbed by 4.13% and China Vanke gained 3.99%.
Wall Street’s lead is weak as major averages opened lower on Friday, then saw wild swings back and forth before finally ending the session in the red.
The Dow Jones lost 4.84 points or 0.01% to end at 36,231.66, while the NASDAQ lost 145.00 points or 0.96% to end at 14,935.90 and the S&P 500 lost 19.02 points or 0.41% to close at 4,677.03. For the week, the NASDAQ plunged 4.5%, the S&P fell 1.9%, and the Dow plunged 0.3%.
Wall Street’s continued pullback followed the release of the closely watched Labor Department monthly employment report. While the report showed much weaker than expected job growth in December, the unemployment rate still fell more than expected.
Economists have indicated that the report is unlikely to alter the Fed’s plans to accelerate monetary policy normalization.
Traders subsequently appear worried that the Fed will raise rates at a time of slowing economic growth due to the Omicron variant of the coronavirus.
Crude oil prices fell on Friday, but still ended the week sharply higher amid supply issues amid growing unrest in Kazakhstan and blackouts in Libya. West Texas Intermediate crude oil futures for February ended down $ 0.56 or 0.7% at $ 78.90 a barrel. WTI crude futures gained 4.9% on the week.
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