- October 16, 2020
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The China stock market has tracked lower in consecutive trading days, sinking almost 30 points or 1 percent along the way. The Shanghai Composite Index now sits just above the 3,340-point plateau and it’s tipped to open lower again on Friday.
The global forecast for the Asian markets is negative on rising coronavirus cases and falling hopes for stimulus. The European and U.S. markets were down and the Asian bourses are predicted to follow suit.
The SCI finished slightly lower on Thursday as losses from the properties were offset by support from the financials and insurance companies.
For the day, the index slipped 8.60 points or 0.26 percent to finish at 3,332.18 after trading between 3,330.00 and 3,354.58. The Shenzhen Composite Index dropped 16.01 points or 0.70 percent to end at 2,274.39.
Among the actives, Industrial and Commercial Bank of China rose 0.20 percent, while Bank of China collected 0.31 percent, China Construction Bank advanced 0.97 percent, China Merchants Bank rallied 2.52 percent, Bank of Communications added 0.44 percent, China Life Insurance accelerated 2.19 percent, Ping An Insurance was up 0.02 percent, China Shenhua Energy gained 0.54 percent, China Vanke lost 0.29 percent, Beijing Capital Development sank 0.74 percent and Gemdale, Poly Developments, PetroChina and China Petroleum and Chemical (Sinopec) were unchanged.
The lead from Wall Street is soft as stocks opened sharply lower on Friday, then cut into the losses as the session progressed but still finished in the red for the second straight day.
The Dow fell 19.80 points or 0.07 percent to finish at 28,494.20, while the NASDAQ lost 54.86 points or 0.47 percent to end at 11,713.87 and the S&P 500 eased 5.33 points or 0.15 percent to close at 3,483.34.
The initial sell-off on Wall Street came amid uncertainty about a new stimulus bill after Treasury Secretary Steven Mnuchin suggested on Wednesday that a new relief package is not likely to pass before next month’s elections.
Early selling pressure was also generated by a Labor Department report showing an unexpected increase in first-time claims for U.S. jobless benefits last week.
However, stocks rebounded well off their lows after Mnuchin told reporters that he and President Donald Trump are committed to getting a stimulus deal done.
Crude oil prices rebounded from early weakness to pare most of their losses on Thursday after data showed a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.96 a barrel.