- January 11, 2021
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The China stock market on Friday wrote a finish to the six-day winning streak in which it had gained more than 200 points or 3 percent. The Shanghai Composite Index now rests just above the 3,570-point plateau although it may rebound at the open on Monday.
The global forecast for the Asian markets suggests a higher open on hopes for additional stimulus and surging oil prices. The European and U.S. markets were up on Friday and the Asian bourses are tipped to at least open in similar fashion, although profit taking may set in later.
The SCI finished slightly lower on Friday following weakness from the insurance companies, a mixed performance from the resource stocks and support from the financials and properties.
For the day, the index eased 6.10 points or 0.17 percent to finish at 3,570.11 after trading between 3,544.89 and 3,588.06. The Shenzhen Composite Index fell 7.16 points pr 0.30 percent to end at 2,419.50.
Among the actives, China Construction Bank collected 0.48 percent, while China Merchants Bank jumped 1.53 percent, China Life Insurance sank 0.79 percent, Jiangxi Copper skyrocketed 8.90 percent, Aluminum Corp of China (Chalco) plunged 1.75 percent, Yanzhou Coal gathered 1.28 percent, PetroChina advanced 0.94 percent, China Petroleum and Chemical (Sinopec) spiked 1.70 percent, China Shenhua Energy rallied 2.03 percent, Gemdale gained 0.88 percent, Poly Developments perked 0.86 percent, China Vanke accelerated 1.91 percent and Industrial and Commercial Bank of China, Bank of China and Bank of Communications were unchanged.
The lead from Wall Street is upbeat as stocks fluctuated on Friday but managed to finish firmly in the green, sending the major averages to fresh record closing highs.
The Dow rose 56.84 points or 0.18 percent to finish at 31,097.97, while the NASDAQ jumped 134.50 points or 1.03 percent to end at 13,201.98 and the S&P 500 gained 20.89 percent or 0.55 percent to close at 3,824.68. For the week, the Dow rose 1.8 percent, the NASDAQ gained 2.4 percent and the S&P added 1.6 percent.
The markets benefited from optimism that a Democrat-controlled government will lead to more fiscal stimulus and a better handling of the coronavirus vaccine rollout.
Traders were also reacting to a closely watched Labor Department report showing an unexpected decrease in U.S. employment in December – which may provide more ammunition for Democrats to pursue additional stimulus.
Crude oil prices rose sharply on Friday, as recent data showing a drop in U.S. crude stockpiles, and Saudi Arabia’s decision to cut output continued to support the commodity. West Texas Intermediate Crude oil futures for February ended up by $1.41 or 2.8 percent at $52.24 a barrel.
Closer to home, China will release December figures for consumer and producer prices later this morning. Overall inflation is predicted to rise 0.4 percent on month and 0.1 percent on year after sinking 0.6 percent on month and 0.5 percent on year in November. Producer prices are tipped to fall 0.8 percent on year after sliding 1.5 percent in the previous month.