China Stock Market May Run Out Of Steam On Friday

(RTTNews) - The China stock market has moved higher in three straight sessions, gathering almost 50 points or 1.7 percent along the way. The Shanghai Composite Index now rests just beneath the 2,990-point plateau although investors are likely to cash in on Friday.

The global forecast for the Asian markets is negative as disappointing earnings news and concerns over the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to open in similar fashion.

The SCI finished modestly higher on Thursday as gains from the financial shares and resource stocks were capped by weakness from the property sector.

For the day, the index added 14.19 points or 0.48 percent to finish at 2,988.30 after trading between 2,956.01 and 2,990.33. The Shenzhen Composite Index gained 8.21 points or 0.45 percent to end at 1,825.39.

Among the actives, Industrial and Commercial Bank of China jumped 1.70 percent, while Bank of China strengthened 1.57 percent, China Construction Bank spiked 1.88 percent, China Merchants Bank rose 0.25 percent, Bank of Communications collected 1.04 percent, China Life Insurance perked 0.06 percent, Jiangxi Copper dipped 0.22 percent, Aluminum Corp of China (Chalco) rallied 1.69 percent, Yankuang Energy tanked 2.23 percent, PetroChina increased 1.64 percent, China Petroleum and Chemical (Sinopec) improved 1.46 percent, Huaneng Power surged 4.37 percent, China Shenhua Energy added 0.63 percent, Gemdale retreated 1.45 percent, Poly Developments slumped 1.32 percent and China Vanke dropped 1.11 percent.

The lead from Wall Street is bleak as the major averages opened mixed on Thursday but quickly turned lower and finished at session lows.

The Dow dropped 251.63 points or 0.76 percent to finish at 32,784.30, while the NASDAQ stumbled 225.62 points or 1.76 percent to close at 12,595.61 and the S&O 500 sank 49.54 points or 1.18 percent to end at 4,137.23.

The weakness on Wall Street followed the release of a slew of largely upbeat U.S. economic data, including a Commerce Department report showing GDP soared by more than expected in the third quarter of 2023.

The resilience of the U.S. economy added to recent concerns about the Federal Reserve leaving interest rates higher for longer than investors had hoped.

In other economic news, the Commerce Department said new orders for U.S. manufactured durable goods spiked more than expected in September. Also, the Labor Department said first-time claims for U.S. unemployment benefits edged higher last week.

Oil prices fell to a two-week low on Thursday as diplomatic efforts to stop Israel from a ground invasion of Gaza helped ease concerns about oil supplies. Recent data showing a surge in U.S. crude inventories, and concerns about interest rates also weighed on oil prices. West Texas Intermediate Crude oil futures for December sank $2.18 or 2.6 percent at $83.21 a barrel.