Renewed Selling Pressure Predicted For China Stocks

(RTTNews) - The China stock market bounced higher again on Thursday, one session after halting the four-day winning streak in which it had jumped more than 140 points or 4.4 percent. The Shanghai Composite Index now sits just beneath the 3,400-point plateau although it figures to head south again on Friday.

The global forecast for the Asian markets calls for continued consolidation, with energy, steel and financial stocks likely to lead the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow suit.

The SCI finished sharply higher on Thursday following gains from the insurance and energy stocks, while the financials, properties and resource companies were mixed.

For the day, the index climbed 37.10 points or 1.10 percent to finish at 3,398.62 after trading between 3,358.93 and 3,417.01. The Shenzhen Composite Index jumped 29.64 points or 1.35 percent to end at 2,224.15.

Among the actives, China Construction Bank collected 0.17 percent, while China Merchants Bank rallied 2.90 percent, Bank of Communications dipped 0.20 percent, China Life Insurance jumped 1.87 percent, Jiangxi Copper eased 0.11 percent, Aluminum Corp of China (Chalco) dipped 0.21 percent, Yankuang Energy added 0.36 percent, PetroChina slid 0.19 percent, China Petroleum and Chemical (Sinopec) shed 0.49 percent, Huaneng Power retreated 1.40 percent, China Shenhua Energy climbed 1.00 percent, Gemdale soared 3.86 percent, Poly Developments advanced 0.92 percent, China Vanke surged 4.43 percent, China Fortune Land dropped 0.93 percent, Beijing Capital Development sank 0.81 percent and China Minsheng Bank, Industrial and Commercial Bank of China and Bank of China were unchanged.

The lead from Wall Street is negative as the major averages opened sharply lower on Thursday, made back some ground as the day progressed but still ended well in the red.

The Dow dropped 253.88 points or 0.82 percent to finish at 30,775.43, while the NASDAQ tumbled 149.16 points or 1.33 percent to end at 11,028.74 and the S&P 500 sank 33.45 points or 0.88 percent to close at 3,785.38.

The early sell-off on Wall Street came amid lingering concerns about the global economic outlook and the possibility of a recession. Central bank chiefs have reaffirmed their resolve to pare inflation despite threats to economic growth.

A Commerce Department report provided further evidence of an economic slowdown, showing that personal spending increased less than expected in May.

Crude oil prices moved sharply lower Thursday, extending the pullback seen in the previous session on lingering concerns about the outlook for demand amid the possibility of a recession. West Texas Intermediate for August delivery plunged $4.02 or 3.7 percent to $105.76 a barrel.