China Shares Predicted To Open In The Green

(RTTNews) – The China stock market has finished lower in back-to-back trading days, surrendering more than 60 points or 2 percent along the way. The Shanghai Composite Index now sits just beneath the 3,220-point plateau although it’s expected to find support on Monday.

The global forecast for the Asian markets is upbeat, with technology stocks expected to lead the markets higher amidst bargain hunting. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to follow the latter lead.

The SCI finished slightly lower on Friday following losses from the property stocks, while the financials and insurance companies were mixed.

For the day, the index eased 3.76 points or 0.12 percent to finish at 3,219.42 after trading between 3,208.03 and 3,239.47. The Shenzhen Composite Index fell 5.03 points or 0.23 percent to end at 2,143.05.

Among the actives, Industrial and Commercial Bank of China fell 0.20 percent, while Bank of China shed 0.31 percent, China Construction Bank rose 0.16 percent, China Merchants Bank collected 0.32 percent, China Life Insurance lost 0.39 percent, Ping An Insurance gained 0.67 percent, PetroChina slid 0.24 percent, China Shenhua Energy climbed 1.37 percent, Gemdale plummeted 3.57 percent, Poly Developments plunged 2.93 percent, China Vanke tumbled 1.71 percent and Bank of Communications and China Petroleum and Chemical (Sinopec) were unchanged.

The lead from Wall Street is positive as stocks showed a lack of direction early Friday but surged in the afternoon to finish solidly higher.

The Dow jumped 358.56 points or 1.34 percent to finish at 27,173.96, while the NASDAQ spiked 241.26 points or 2.26 percent to end at 10,913.56 and the S&P 500 climbed 51.87 points or 1.60 percent to close at 3,298.46. For the week, the Dow fell 1.7 percent, the NASDAQ rose 1.1 percent and the S&P was down 0.6 percent.

The strength that emerged on Wall Street came as technology stocks moved higher, rebounding from recent weakness. Big-name tech stocks like Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) posted significant gains on the day.

Traders also kept an eye on developments in Washington amid reports House Democrats plan to unveil a new $2.4 trillion coronavirus relief bill. The price tag for the bill is $1 trillion less than a stimulus package the House passed back in May but may still be too high for Republicans.

In economic news, the Commerce Department reported a much smaller than expected increase in durable goods orders in August.

Crude oil prices eased on Friday, weighed down by concerns about the outlook for energy demand due to rising coronavirus cases and fresh lockdown measures. West Texas Intermediate Crude oil futures for November ended down $0.06 or 0.2 percent at $40.25 a barrel. WTI Crude oil futures shed 2.6 percent for the week.

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

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