China Stock Market Has Negative Lead For Friday

(RTTNews) - The China stock market on Thursday ended the two-day winning streak in which it had added almost 10 points or 0.4 percent. Now at an almost four-year low, the Shanghai Composite Index sits just above the 2,580-point plateau and it's called to open lower again on Friday.

The global forecast for the Asian markets continues to be weak, thanks to concerns over global growth and interest rates - while tumbling crude oil prices add to the soft sentiment. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The SCI finished sharply lower on Thursday following losses from the financials, properties and resource stocks, among others.

For the day, the index plunged 142.38 points or 5.22 percent to finish at 2,583.46 after trading between 2,560.32 and 2,661.29. The Shenzhen Composite Index tumbled 89.15 points or 6.45 percent to end at 1,293.90

Among the actives, Bank of China shed 2.78 percent, while Industrial and Commercial Bank of China lost 2.70 percent, China Merchants Bank skidded 3.89 percent, China life Insurance dropped 3.31 percent, China Construction Bank retreated 3.75 percent, China Petroleum and Chemical (Sinopec) tumbled 4.05 percent, PetroChina plunged 5.36 percent, China Shenhua Energy declined 4.75 percent, Jiangxi Copper plummeted 6.63 percent, Aluminum Corporation of China (Chalco) tumbled 7.85 percent, Yanzhou Coal fell 1.69 percent, Anhui Conch Cement slid 4.86 percent, Gemdale plunged 6.71 percent, China Vanke lost 3.77 percent and Poly Real Estate shed 3.26 percent.

The lead from Wall Street is negative as stocks opened lower on Thursday and showed wild swings before finishing firmly in the red.

The Dow shed 545.77 points or 2.13 percent to finish at 25,052.97, while the NASDAQ lost 92.99 points or 1.25 percent to 7,329.06 and the S&P fell 57.31 points or 2.06 percent to 2,728.37.

The lower close on Wall Street came even though strength in the bond market led to a significant drop by treasury yields. Even with the decrease in yields, traders remained concerned about the outlook for the interest rates as well as the escalating trade war between the U.S. and China.

Treasuries benefited from the release of a report from the Labor Department showing consumer prices rose by less than expected in September. Also, the Labor Department noted a modest increase in first-time claims for U.S. jobless benefits in the week ended October 6.

Crude oil prices tumbled on Thursday after data showed U.S. crude stockpiles to have risen for a third straight week. Crude oil futures for November delivery ended down $2.20 or 3 percent at $70.97 a barrel.
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