China Shares Expected To Return To The Downside

(RTTNews) - Ahead of the week-long National Day break, the China stock market had moved higher in two of three trading days. The Shanghai Composite Index now rests just above the 2,820-point plateau, although it's likely top open under pressure on Monday as it catches up on missed negative sentiment.

The global forecast for the Asian markets is negative on growing concerns about the outlook for interest rates. The European and U.S. markets were firmly lower and the already oversold Asian bourses are tipped to at least open in the red.

The SCI finished sharply higher on Sept. 28 following gains from the financials and oil and insurance companies, while the property stocks were mixed.

For the day, the index climbed 29.58 points or 1.06 percent to finish at 2,821.35 after trading between 2,791.84 and 2,821.76. The Shenzhen Composite Index picked up 11.93 points or 0.83 percent to end at 1,441.54.

Among the actives, Gemdale added 0.22 percent, while Poly Real Estate dropped 0.73 percent, China Vanke fell 0.61 percent, Agricultural Bank of China climbed 1.30 percent, China Construction Bank jumped 1.54 percent, Industrial and Commercial Bank of China advanced 1.41 percent, Bank of China perked 1.09 percent, Bank of Communications added 0.52 percent, Ping An Insurance spiked 1.93 percent, China Life Insurance collected 0.84 percent, China Petroleum and Chemical (Sinopec) gathered 1.14 percent, PetroChina was up 0.66 percent, Baoshan Iron shed 0.76 percent and China Shenhua Energy gained 0.54 percent.

The lead from Wall Street is soft as stocks opened sharply lower on Friday and remained in the red throughout the session, extending recent losses.

The Dow slid 180.43 points or 0.68 percent to 26,447.05, the NASDAQ tumbled 91.06 points or 1.16 percent to 7,788.45 and the S&P fell 16.04 points or 0.55 percent to 2,885.57. For the week, the eased 0.1 percent, the S&P lost 1 percent and the NASDAQ plunged 3.2 percent.

The weakness on Wall Street came as treasury yields extended a recent upward move following the release of the monthly jobs report, adding to concerns about the outlook for interest rates.

While the Labor Department report showed weaker than expected job growth in September, the jump in employment in August was upwardly revised and the unemployment rate fell to 3.7 percent for its lowest level since 1969.

Also, the Commerce Department showed the U.S. trade deficit widened in August, reflecting an increase in imports and a decrease in exports.

Crude oil prices retreated after edging higher early on in the session on Friday, as traders weighed the decision of Russia and Saudi Arabia to increase output. Crude oil futures for November ended at $74.34 a barrel, gaining a penny.

Closer to home, China will see September results for the services and composite PMIs from Caixin later this morning. Both indexes are expected to hold steady from the August readings, at 51.5 and 52.0, respectively.
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