China Stock Market May Extend Thursday's Losses

(RTTNews) - The China stock market on Thursday ended the three-day winning streak in which it had picked up more than 55 points or 1.3 percent. The Shanghai Composite Index now sits just above the 4,090-point plateau and it's tipped to open under water again on Friday.

The global forecast for the Asian markets is soft on surging crude oil prices that correspond with tensions in the Middle East. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to open lower.

The SCI finished modestly lower on Thursday following losses from the properties and resource stocks, gains from the oil companies and a mixed picture from the financial sector.

For the day, the index fell 13.01 points or 0.32 percent to finish at 4,093.25 after trading between 4,070.46 and 4,114.84. The Shenzhen Composite Index lost 29.38 points or 1.05 percent to end at 2,759.62.

Among the actives, Industrial and Commercial Bank of China collected 0.80 percent, while Bank of China fell 0.20 percent, Agricultural Bank of China shed 0.57 percent, China Merchants Bank and China Petroleum and Chemical (Sinopec) both perked 0.18 percent, Bank of Communications and Huaneng Power both rose 0.29 percent, China Life Insurance lost 0.54 percent, Jiangxi Copper tanked 2.81 percent, Aluminum Corp of China (Chalco) retreated 1.49 percent, Yankuang Energy soared 3.77 percent, PetroChina surged 3.23 percent, China Shenhua Energy rallied 2.42 percent, Gemdale surrendered 1.82 percent, Poly Developments skidded 1.01 percent and China Vanke tumbled 1.80 percent.

The lead from Wall Street is weak as the major averages opened lower on Thursday, dipped midday before ticking higher but still finished in the red.

The Dow dropped 179.71 points or 0.36 percent to finish at 49,310.32, while the NASDAQ sank 219.06 points or 0.89 percent to end at 24,438.50 and the S&P 500 lost 29.50 points or 0.41 percent to close at 7,108.40.

Profit taking contributed to the early weakness on Wall Street following Wednesday's rally, which sent the NASDAQ and S&P to record closing highs.

A steep drop by shares of IBM Corp. (IBM) also weighed on the markets, after the tech giant reported better than expected first quarter earnings but failed to raise its full-year guidance.

Concerns about a re-escalation of the U.S.-Iran war also weighed on the markets after President Donald Trump said he has ordered the Navy to "shoot and kill any boat" that is putting mines in the waters of the Strait of Hormuz.

Crude oil prices surged on Thursday as the Strait of Hormuz remains closed, keeping oil supply concerns elevated. West Texas Intermediate crude for June was up $2.49 or 2.68 percent at $95.45 per barrel.