Rebound Predicted For China Stock Market

(RTTNews) - The China stock market on Friday ended the four-day winning streak in which it had climbed more than 110 points or 2.7 percent. The Shanghai Composite Index now sits just above the 3,810-point plateau although it's looking at a steady start on Monday.

The global forecast for the Asian markets is mixed to higher, with sliding oil prices offset by weakness among the tech shares. The European markets were up and the U.S. bourses were down and the Asian markets figure to split the difference.

The SCI finished sharply lower on Friday following losses from the financial shares and technology companies.

For the day, the index tanked 62.58 points or 1.61 percent to finish at 3,814.20 after trading between 3,808.64 and 3,861.04. The Shenzhen Composite Index crashed 63.93 points or 2.57 percent to end at 2,419.23.

The lead from Wall Street is murky as the major averages opened mixed and bounced up and down all day before ending on opposite sides of the line.

The Dow jumped 235.60 points or 0.46 percent to finish at 51,947.25, while the NASDAQ sank 161.87 points or 0.64 percent to end at 24,975.82 and the S&P 500 perked 3.68 points or 0.05 percent to close at 7,411.98.

The tech-heavy NASDAQ tumbled 2.1 percent for the week, closing below 25,000 for the first time since late April. The S&P 500 and Dow posted more modest weekly losses, falling by 0.6 percent and 0.4 percent, respectively.

The strength that emerged on Wall Street in morning trading came amid a sharp pullback by the price of crude oil as investors analyzed the impact of an output increase by the Organization of Petroleum Exporting Countries. West Texas Intermediate crude for September delivery was down $2.99 or 3.24 percent at $89.20 per barrel.

The subsequent pullback by stocks in afternoon trading reflected renewed tariff concerns after President Donald Trump threatened to impose substantial tariffs on the European Union over the substantial fines the bloc has levied against major U.S. tech companies.

Closer to home, China will release June data for industrial profits later this morning; in May, profits were up 18.8 percent on year.