China Stock Market Tipped To End Losing Streak

(RTTNews) - The China stock market has finished lower in back-to-back sessions, dropping more than 110 points or 2.9 percent in that span. The Shanghai Composite Index now sits just above the 3,830-point plateau although it may find traction on Monday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. 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 sharply lower on Friday following losses from the financial shares, resource stocks and properties.

For the day, the index plunged 96.16 points or 2.45 percent to finish at 3,834.89 after trading between 3,834.75 and 3,912.01. The Shenzhen Composite Index crashed 84.12 points or 3.43 percent to end at 2,370.32.

Among the actives, Industrial and Commercial Bank of China fell 0.24 percent, while Bank of China collected 0.80 percent, Agricultural Bank of China slumped 1.35 percent, China Merchants Bank shed 0.53 percent, Bank of Communications lost 0.39 percent, China Life Insurance tumbled 2.07 percent, Jiangxi Copper plunged 3.91 percent, Aluminum Corp of China (Chalco) plummeted 4.71 percent, Yankuang Energy retreated 1.62 percent, PetroChina dropped 0.89 percent, China Petroleum and Chemical (Sinopec) declined 1.32 percent, Huaneng Power stumbled 1.78 percent, China Shenhua Energy perked 0.17 percent, Gemdale tanked 2.89 percent, Poly Developments surrendered 1.98 percent and China Vanke cratered 2.26 percent.

The lead from Wall Street is positive as the major averages opened flat on Friday but rallied in the afternoon, finishing near daily highs.

The Dow jumped 493.15 points or 1.08 percent to finish at 46,245.41, while the NASDAQ rallied 195.03 points or 0.88 percent to end at 22,273.08 and the S&P 500 gained 64.23 points or 0.98 percent to close at 6,602.99.

For the week, the NASDAQ plunged 2.7 percent, the S&P 500 tumbled 2.0 percent and the Dow slumped 1.9 percent.

The strength that emerged on Wall Street reflected renewed optimism about the Federal Reserve lowering interest rates at its next monetary policy meeting in December following dovish remarks by New York Federal Reserve President John Williams.

Potentially adding to the optimism about the outlook for interest rates, the University of Michigan released a report showing decreases by both year-ahead inflation and long-run inflation expectations in November.

Crude oil prices slumped Friday on oversupply concerns after Ukraine expressed support for the U.S. peace plan to stop the Russia-Ukraine war. West Texas Intermediate crude for January delivery was down by $0.86 or 1.46 percent at $58.14 per barrel.