Rally May Stall For China Stock Market

(RTTNews) - The China stock market has moved higher in back-to-back sessions, gathering more than 15 points or 0.5 percent along the way. The Shanghai Composite Index now sits just above the 3,510-point plateau although it may be stuck in neutral on Monday.

The global forecast for the Asian markets is negative on lingering trade concerns. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The SCI finished barely higher on Friday following gains from the resource stocks and weakness from the financial shares and properties.

For the day, the index perked 0.50 points or 0.01 percent to finish at 3,510.18 after trading between 3,506.80 and 3,555.22. The Shenzhen Composite Index added 9.83 points or 0.47 percent to end at 2,116.93.

Among the actives, Industrial and Commercial Bank of China lost 0.87 percent, while Bank of China stumbled 2.23 percent, Agricultural Bank of China rose 0.16 percent, China Merchants Bank declined 1.30 percent, Bank of Communications tanked 1.95 percent, China Life Insurance collected 0.75 percent, Jiangxi Copper rallied 1.82 percent, Aluminum Corp of China (Chalco) jumped 1.96 percent, Yankuang Energy skidded 1.12 percent, PetroChina dipped 0.12 percent, China Petroleum and Chemical (Sinopec) slumped 0.87 percent, Huaneng Power retreated 1.27 percent, China Shenhua Energy tumbled 1.76 percent, Gemdale sank 0.72 percent, Poly Developments dropped 0.96 percent and China Vanke was unchanged.

The lead from Wall Street is soft as the major averages opened lower on Friday and remained under water for almost the entire session.

The Dow dropped 279.09 points or 0.63 percent to finish at 44,371.51, while the NASDAQ sank 45.17 points or 0.22 percent to close at 20,585.53 and the S&P 500 lost 20.71 points or 0.33 percent to end at 6,259.75.

The weakness on Wall Street came amid renewed concerns about President Donald Trump's escalating trade battles.

Overall trading activity was somewhat subdued, however, amidst a lack of major economic data and ahead of earnings season this coming week.

Crude oil rose sharply on Friday after the International Energy Agency upwardly revised its oil supply forecast and also buoyed by lingering geopolitical risks in the Middle East. West Texas Intermediate crude for August delivery closed up $1.88 to settle at $68.45 per barrel.

Closer to home, China will release June figures for imports, exports and trade balance later this morning. Imports are expected to rise 1.3 percent on year after slipping 3.4 percent in May. Exports are called higher by an annual 5.0 percent, up from 4.8 percent in the previous month. The trade surplus is pegged at $109.00 billion, up from $103.22 billion a month earlier.