(RTTNews) – The China stock market on Friday wrote a finish to the four-day winning streak in which it had jumped almost 125 points or 3.8 percent. The Shanghai Composite Index now rests just above the 3,460-point plateau and it’s likely to open under pressure again on Monday.
The global forecast for the Asian markets is soft on growing concerns over a possible Russian invasion on Ukraine. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.
The SCI finished modestly lower on Friday as losses from the properties, airlines and resource stocks were tempered by support from the financials and energy producers.
For the day, the index shed 22.96 points or 0.66 percent to finish at 3,462.95 after trading between 3,459.33 and 3,500.15. The Shenzhen Composite Index slumped 39.51 points or 1.72 percent to end at 2,262.96.
Among the actives, Industrial and Commercial Bank of China rose 0.21 percent, while China Construction Bank collected 0.63 percent, China Merchants Bank rallied 2.03 percent, Bank of Communications added 0.60 percent, China Minsheng Bank gained 0.50 percent, China Life Insurance skyrocketed 7.34 percent, Jiangxi Copper skidded 1.28 percent, Aluminum Corp of China (Chalco) tumbled 1.76 percent, Yankuang Energy surged 5.23 percent, PetroChina soared 5.07 percent, China Petroleum and Chemical (Sinopec) climbed 1.12 percent, Huaneng Power slumped 0.46 percent, China Shenhua Energy spiked 1.99 percent, China Southern Airlines tanked 2.31 percent, Gemdale sank 0.77 percent, Poly Developments retreated 1.69 percent, China Vanke jumped 1.58 percent, China Fortune Land dropped 0.88 percent, Beijing Capital Development declined 1.17 percent and Bank of China was unchanged.
The lead from Wall Street is broadly negative as the major averages shook off a slightly higher open on Friday, accelerated quickly lower and finished deep in the red.
The Dow sank 503.54 points or 1.43 percent to finish at 34,738.06, while the NASDAQ plunged 394.45 points or 2.78 percent to close at 13,791.15 and the S&P 500 tumbled 85.44 points or 1.90 percent to end at 4,418.64. For the week, the Dow shed 1 percent, the NASDAQ dropped 2.2 percent and the S&P fell 1.8 percent.
The substantial weakness that emerged on Wall Street came amid concerns about a potential Russian invasion of Ukraine, which officials believe could happen any time now.
Earlier in the day, uncertainty about the outlook for interest rates led to choppy trading on speculation that the Federal Reserve could raise interest rates by a full percentage point by July, including a possible 50-basis point hike in March.
Oil prices rose sharply on Friday following a report from the International Energy Agency that said oil production from OPEC was significantly below target in January. West Texas Intermediate Crude oil futures for March ended higher by $3.22 or 3.6 percent at $93.10 a barrel, a fresh seven-year closing high.
Closer to home, China will release January figures for foreign direct investment later today; in December, FDI was up 14.9 percent on year.
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