(RTTNews) – The China stock market on Thursday ended the two-day winning streak in which it had collected more than 25 points or 0.6 percent. The Shanghai Composite Index now sit just beneath the 4,060-point plateau although it may tick higher again on Friday.
The global forecast for the Asian markets is mostly positive on easing oil prices and optimism for an end to hostilities in the Middle East. The European markets were up and the U.S. bourse were mostly higher and the Asian markets are also tipped to move to the upside.
The SCI finished modestly lower on Thursday following losses from the financial shares, properties and resource stocks.
For the day, the index shed 26.19 points or 0.64 percent to finish at 4,057.78 after trading between 4,043.43 and 4,080.72. The Shenzhen Composite Index fell 11.67 points or 0.41 percent to end at 2,801.25.
Among the actives, Industrial and Commercial Bank of China fell 0.69 percent, while Bank of China shed 0.84 percent, Agricultural Bank of China lost 0.94 percent, China Merchants Bank contracted 1.04 percent, Bank of Communications dropped 0.88 percent, China Life Insurance slumped 1.19 percent, Jiangxi Copper plummeted 4.10 percent, Aluminum Corp of China (Chalco) cratered 9.24 percent, Yankuang Energy soared 5.01 percent, PetroChina retreated 1.84 percent, China Petroleum and Chemical (Sinopec) sank 0.82 percent, Huaneng Power plunged 4.16 percent, China Shenhua Energy rose 0.35 percent, Gemdale skidded 1.14 percent, Poly Developments tanked 2.18 percent and China Vanke tumbled 2.13 percent.
The lead from Wall Street is cautiously optimistic as the major averages opened mixed on Thursday and then tracked steadily higher throughout the day but still ended on opposite sides of the line.
The Dow soared 874.86 points or 1.73 percent to finish at a record 51,561.93, while the NASDAQ dipped 23.02 points or 0.09 percent to close at 26,830.96 and the S&P 500 added 30.63 points or 0.41 percent to end at 7,584.31.
The rebound by the Dow reflected a spike by shares of UnitedHealth (UNH) following an upgrade by Bank of America. Dow components American Express (AXP), Goldman Sachs (GS) and Merck (MRK) also posted strong gains.
The NASDAQ climbed well off its worst levels but still ended the day modestly lower amid weakness among technology stocks.
A steep drop by shares of Broadcom (AVGO) weighed on the tech sector, despite fiscal Q2 earnings that exceeded estimates although the company failed to raise its full-year forecast of $100 billion in AI chip sales.
Crude oil prices plunged on Wednesday on hopes of de-escalation in the Middle East following an Israel-Lebanon ceasefire announcement. West Texas Intermediate crude for July delivery was down $3.00 or 3.12 percent at $93.02 per barrel.
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