Nasdaq Today – Rebound Anticipated For China Stock Market
(RTTNews) – The China stock market on Thursday wrote a finish to the three-day winning streak in which it had climbed more than 40 points or 1.2 percent. The Shanghai Composite Index now rests just beneath the 3,430-point plateau although it’s expected bounce higher again on Friday.
The global forecast for the Asian markets is positive, with bargain hunting expected particularly among the technology stocks. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The SCI finished modestly lower on Thursday following losses from the financial shares, property stocks and resource companies.
For the day, the index dropped 33.22 points or 0.96 percent to finish at 3,429.54 after trading between 3,418.38 and 3,448.02. The Shenzhen Composite Index lost 18.51 points or 0.81 percent to end at 2,253.30.
Among the actives, Industrial and Commercial Bank of China shed 0.38 percent, while China Construction Bank lost 0.57 percent, China Merchants Bank dropped 0.91 percent, Bank of Communications eased 0.20 percent, China Life Insurance retreated 0.97 percent, Jiangxi Copper plummeted 7.93 percent, Aluminum Corp of China (Chalco) plunged 9.23 percent, Yanzhou Coal tanked 5.48 percent, China Petroleum and Chemical (Sinopec) declined 1.56 percent, China Shenhua Energy tumbled 3.35 percent, Poly Developments fell 0.30 percent, China Vanke sank 0.55 percent, China Fortune Land surrendered 1.87 percent and Gemdale, Bank of China and PetroChina were unchanged.
The lead from Wall Street is firm as stocks opened higher on Thursday and remained solidly in the green throughout the trading day.
The Dow surged 433.79 points or 1.29 percent to finish at 34,021.45, while the NASDAQ advanced 93.31 points or 0.72 percent to end at 13,124.99 and the S&P 500 climbed 49.46 points or 1.22 percent to close at 4,112.50.
The rally on Wall Street came as investors scooped up bargains following heavy losses in recent sessions, which were driven by inflation concerns.
In economic news, the Labor Department said producer prices increased more than expected in April. The Labor Department also said first-time claims for U.S. unemployment benefits fell more than expected last week.
Crude oil prices declined sharply on Thursday, weighed down by rising worries about outlook for energy demand and on news that Colonial Pipeline has resumed operations at its facilities. West Texas Intermediate Crude oil futures for June ended down by $2.26 or 3.4 percent at $63.82 a barrel, a two-week low.
Closer to home, China will provide April figures for foreign direct investment later today; in March, FDI surged 39.9 percent on year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.