BEIJING (dpa-AFX) - The China stock market on Monday snapped the four-day winning streak in which it had advanced more than 80 points or 2.7 percent. The Shanghai Composite Index now rests just above the 2,935-point plateau although it figures to bounce higher again on Tuesday.
The global forecast for the Asian markets is upbeat on optimism that the economy will continue to recover from the Covid-19 shutdown. The European markets were down and the U.S. bourses were up and the Asian markets are predicted to follow the latter lead.
The SCI finished barely lower on Monday following losses from the property stocks and energy producers, while the financials were mixed.
For the day, the index dipped 2.36 points or 0.08 percent to finish at 2,965.27 after trading between 2,959.03 and 2,983.44. The Shenzhen Composite Index rose 5.54 points or 0.29 percent to end at 1,936.65.
Among the actives, Industrial and Commercial Bank of China shed 0.77 percent, while Bank of China fell 0.29 percent, China Construction Bank collected 0.32 percent, China Merchants Bank skidded 1.06 percent, China Life Insurance lost 0.53 percent, Ping An Insurance dropped 0.89 percent, PetroChina sank 0.70 percent, China Petroleum and Chemical (Sinopec) retreated 0.50 percent, China Shenhua Energy tumbled 1.20 percent, Gemdale tanked 1.88 percent, Poly Developments declined 0.82 percent and China Vanke was down 1.00 percent.
The lead from Wall Street is positive as stocks moved mostly higher on Monday, shaking off early directionless trade to finish in the green.
The Dow added 153.50 points or 0.59 percent to finish at 26,024.96, while the NASDAQ jumped 110.35 points or 1.11 percent to end at 10,056.47 and the S&P 500 rose 20.12 points or 0.65 percent to close at 3,117.86.
The strength that emerged on Wall Street came as traders continued to express optimism the U.S. economy will quickly recover from the coronavirus-induced setback. Recent retail sales and employment data far exceeded estimates, helping reinforce hopes of a V-shaped recovery even as most economists urge caution.
According to the World Health Organization, more than 183,000 new coronavirus infections were reported globally on Sunday, the biggest single-day increase since the outbreak began.
Traders shrugged off a report from the National Association of Realtors showing a continued nosedive in existing home sales in May.
Crude oil prices rose fairly sharply on Monday as traders continued to bet energy demand will increase despite reports showing a surge in new coronavirus infections. West Texas Crude oil futures contracts for July expired at $40.46 barrel, gaining $0.71 or 1.8 percent for the session.
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