BEIJING (dpa-AFX) - The China stock market has finished lower in two straight sessions, sinking more than 25 points or 0.7 percent along the way. The Shanghai Composite Index now rests just beneath the 3,385-point plateau and it's predicted to open in the red again on Friday.
The global forecast for the Asian markets is broadly negative, with oil and technology stocks expected to lead the way lower after sharp gains in recent weeks. The European and U.S. markets were down and the Asian markets figure to follow suit.
The SCI finished modestly lower on Thursday as losses from the financials and oil companies were mitigated by support from the properties.
For the day, the index sank 19.82 points or 0.56 percent to finish at 3,384.98 after trading between 3,374.26 and 3,425.63. The Shenzhen Composite Index dropped 19.59 points or 0.84 percent to end at 2,301.81.
Among the actives, Industrial and Commercial Bank of China dipped 0.20 percent, while China Construction Bank shed 0.65 percent, China Merchants Bank sank 0.59 percent, Bank of Communications lost 0.43 percent, China Life Insurance tumbled 1.52 percent, PetroChina dropped 0.92 percent, China Petroleum and Chemical (Sinopec) fell 0.25 percent, China Shenhua Energy advanced 0.88 percent, Gemdale added 0.34 percent, Poly Developments gained 0.80 percent, China Vanke climbed 1.05 percent and Bank of China and China Minsheng Bank were unchanged.
The lead from Wall Street is firmly negative as stocks showed a substantial move to the downside on Thursday as investors cashed in on recent gains.
The Dow plunged 807.77 points or 2.78 percent to finish at 28,292.73, while the NASDAQ plummeted 598.34 points or 4.96 percent to end at 11,458.10 and the S&P 500 tumbled 125.78 points or 3.51 percent to close at 3,455.06.
The sell-off on Wall Street largely reflected profit taking as traders looked to cash in on the recent strength in the markets. Stocks had been trending higher over the past several weeks, leading some analysts to suggest the recovery by the markets has been overdone.
In a marked reversal from recent sessions, tech stocks led the markets lower, as reflected by the nosedive by the NASDAQ.
In economic news, the Labor Department said first-time claims for U.S. unemployment benefits fell more than expected last week. Also, the Institute for Supply Management saw a modest slowdown in the pace of growth in service sector activity in August.
Crude oil prices recovered after an early sharp fall on Thursday but still ended in the red on concerns about the pace of economic recovery and the outlook for energy demand. West Texas Intermediate Crude oil futures for October ended down $0.14 or 0.3 percent at $41.37 a barrel.
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