Higher Open Called For China Stock Market

(RTTNews) - The China stock market on Friday ended the two-day slide in which it had dipped more than a dozen points or 0.3 percent. The Shanghai Composite Index now sit just above the 4,030-point plateau and it's looking at continued support again on Monday.

The global forecast for the Asian markets is cautiously optimistic on hopes for an end to the conflict in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion. The SCI finished sharply higher on Friday following gains from the financial, resource, oil and property companies. For the day, the index climbed 44.50 points or 1.12 percent to finish at 4,031.51 after trading between 4,008.18 and 4,060.27. The Shenzhen Composite Index advanced 26.45 points or 0.99 percent to end at 2,697.17. Among the actives, Industrial and Commercial Bank of China gained 1.57 percent, while Bank of China collected 1.45 percent, Agricultural Bank of China strengthened 1.80 percent, China Merchants Bank jumped 1.58 percent, Bank of Communications vaulted 2.44 percent, China Life Insurance accelerated 4.31 percent, Jiangxi Copper surged 7.25 percent, Aluminum Corp of China (Chalco) soared 4.55 percent, Yankuang Energy shed 0.65 percent, PetroChina perked 0.10 percent, China Petroleum and Chemical (Sinopec) spiked 3.13 percent, Huaneng Power retreated 1.47 percent, China Shenhua Energy tanked 2.43 percent, Gemdale rallied 1.21 percent, Poly Developments advanced 1.17 percent and China Vanke climbed 1.28 percent.

The lead from Wall Street suggests mild upside as the major averages shook off early weakness on Friday before trending higher to finish firmly in the green.

The Dow jumped 353.51 points or 0.70 percent to finish at 51,202.26, while the NASDAQ added 79.18 points or 0.31 percent to close at 25,888.84 and the S&P 500 collected 37.16 points or 0.50 percent to end at 7,431.46.

Optimism about an end to the conflict in the Middle East contributed to continued strength on Wall Street, although traders seemed reluctant to make more significant moves amid conflicting comments from President Donald Trump.

Reports have indicated the U.S.-Iran memorandum of understanding calls for the Strait of Hormuz to be reopened immediately without tolls and for Iran to receive sanctions relief based on compliance.

Traders also kept an eye on shares of SpaceX (SPCX), with the rocket maker making its debut on the NASDAQ in the largest initial public offering (IPO) in history. SpaceX soared by 19.3 percent on the day.

Crude oil prices tumbled on Friday after Trump claimed that the Strait of Hormuz will reopen, resulting in waning supply disruption concerns. West Texas Intermediate crude for July delivery sank $2.86 or 3.26 percent at $84.85 per barrel.