China Bourse May Halt Losing Streak

BEIJING (dpa-AFX) – The China stock market has moved lower in consecutive trading days, sliding more than 50 points or 1.9 percent along the way. The Shanghai Composite Index now rests just shy of the 2,735-point plateau although it may find traction on Friday.

The global forecast for the Asian markets is firm thanks to optimism over the latest batch of minutes from the FOMC. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The SCI finished modestly lower on Thursday following losses from the resource stocks and mixed performances from the properties.

For the day, the index retreated 25.24 points or 0.91 percent to finish at 2,733.88 after trading between 2,727.94 and 2,777.52. The Shenzhen Composite Index plummeted 34.33 points or 2.20 percent.

Among the actives, Bank of China jumped 1.42 percent, while Industrial and Commercial Bank of China climbed 1.36 percent, China Construction Bank perked 1.42 percent, China Merchants Bank advanced 1.56 percent, China Life perked 1.49 percent, China Petroleum and Chemical (Sinopec) spiked 1.28 percent, PetroChina shed 0.80 percent, China Shenhua Energy soared 1.54 percent, Baoshan Iron & Steel tumbled 2.61 percent, China Vanke added 0.22 percent, Gemdale skidded 1.26 percent, Poly Rea Estate dropped 1.11 percent and CITIC Securities fell 0.44 percent.

The lead from Wall Street is positive as stocks opened higher on Thursday, faded in the late morning but regrouped in the afternoon to end near their highest levels of the day.

The Dow added 181.92 points or 0.75 percent to finish at 24,356.74, the NASDAQ jumped 83.75 points or 1.12 percent to 7,586.43 and the S&P gained 23.39 points or 0.86 percent to 2,736.61.

The late rally was in response to the minutes of the Fed’s June meeting, which said the Federal Reserve intends to press ahead with interest rate hikes despite mounting concerns about a possible trade war.

At that meeting, the Fed raised rates and projected four rate increases in 2018 instead of three previously planned. The central bank, however, maintained its outlook for three rate hikes in 2019.

In economic news, the Institute for Supply Management said activity in the U.S. service sector accelerated in June, while payroll processor ADP said private sector employment increased less than expected. Also, the Labor Department noted an uptick in first-time claims for U.S. jobless benefits in the week ended June 30.

Crude oil futures fell Thursday following a surprise increase in U.S. oil inventories. WTI light sweet oil was down 97 cents to $73.17 a barrel, easing from a four-year peak.

This article provided by NewsEdge.