(RTTNews) – The China stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had gathered more than 40 points or 1.2 percent. The Shanghai Composite Index now rests just beneath the 3,540-point plateau and it may take further damage on Monday.
The global forecast for the Asian markets is negative on inflation concerns and sinking crude oil prices. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.
The SCI finished modestly lower on Friday following losses from the oil companies and financials, support from the resource stocks and a mixed picture from the property sector.
For the day, the index sank 25.29 points or 0.71 percent to finish at 3,539.30 after trading between 3,537.73 and 3,566.00. The Shenzhen Composite Index dropped 24.66 points or 0.99 percent to end at 2,454.06.
Among the actives, Industrial and Commercial Bank of China fell 0.21 percent, while Bank of China collected 0.33 percent, China Merchants Bank eased 0.10 percent, Bank of Communications dipped 0.22 percent, China Life Insurance shed 0.74 percent, Jiangxi Copper added 0.73 percent, Aluminum Corp of China (Chalco) soared 4.11 percent, Yanzhou Coal surged 4.43 percent, PetroChina sank 0.82 percent, China Petroleum and Chemical (Sinopec) lost 0.48 percent, China Shenhua Energy advanced 0.95 percent, Gemdale rose 0.20 percent, Poly Developments was down 0.08 percent, China Vanke jumped 1.83 percent, Beijing Capital retreated 1.17 percent and China Construction Bank was unchanged.
The lead from Wall Street is soft as stocks opened slightly higher on Friday but quickly turned lower, with the losses accelerating heading into the close.
The Dow tumbled 299.15 points or 0.86 percent to finish at 34,687.85, while the NASDAQ sank 115.86 points or 0.80 percent to end at 14,427.24 and the S&P 500 lost 32.87 points or 0.75 percent to close at 4,327.16. For the week, the Dow fell 0.5 percent, the NASDAQ dropped 1.9 percent and the S&P shed 1 percent.
The initial strength on Wall Street came after the Commerce Department released a report showing an unexpected increase in retail sales in June. But stocks came under pressure after a separate report from the University of Michigan showed an unexpected slump in consumer sentiment in July amid concerns about inflation.
Crude oil futures settled slightly higher Friday, moving up after two days of sharp losses but ending with a sharp weekly loss. Worries about outlook for energy demand due to the surge in the delta variant of the coronavirus weighed on the commodity.
Also, OPEC+ agreed on a deal to increase crude output over the weekend, putting further pressure on prices. West Texas Intermediate Crude oil futures for August ended up by $0.16 or 0.2 percent on Friday at $71.81 a barrel; oil futures shed nearly 4 percent in the week.