SHANGHAI: The China stock market has finished lower in two of three trading days since the end of the four-day winning streak in which it had advanced more than 40 points or 1.3 percent. The Shanghai Composite Index now rests just above the 3,240-point plateau, and the market figures to bounce higher again on Monday.
The global forecast for the Asian markets is flat to lower as upbeat U.S. employment data increased the likelihood of an interest rate hike later this month – but the downside figures to be capped by support from crude oil prices. The European markets were down and the U.S. bourses were mixed but little changed – and the Asian markets figure to split the difference.
But the regional China markets figure to spike on Monday thanks to the opening of the stock-trading link between the Shenzhen and Hong Kong market.
For the day, the index retreated 29.47 points or 0.90 percent to finish at 3,243.84 after trading between 3,235.28 and 3,279.71. The Shenzhen Composite Index skidded 35.20 points or 1.66 percent to end at 2,084.49.
Among the actives, Agricultural Bank of China added 0.31 percent, while Bank of China shed 0.28 percent, China Unicom plummeted 6.68 percent, China Shenhua gained 0.12 percent, Vanke skidded 1.93 percent, Gemdale fell 1.34 percent and Zijin Mining tumbled 2.19 percent.
The lead from Wall Street provides little clarity as stocks showed a lack of direction on Friday, bouncing back and forth across the unchanged line before roughly flat.
The Dow dipped 21.51 points or 0.1 percent to 19,170.42, while the NASDAQ added 4.55 points or 0.1 percent to 5,255.65 and the S&P gained 0.87 points or 0.01 percent to 2,191.95. For the week, the Dow was up by 0.1 percent, while the NASDAQ plunged 2.7 percent and the S&P 500 fell 1 percent.
The choppy trading followed the Labor Department’s closely watched monthly employment report for November – which saw the jobless rate fall to its lowest rate since August 2007.
The stronger than expected job growth reinforced expectations that the Federal Reserve will rates interest rates at its next meeting later this month.
Crude oil futures rose Friday, as January WTI oil gains 62 cents or 1.2 percent to settle at $51.68/bbl. Prices surged 12 percent last week after OPEC’s deal with Russia to curb supplies and keep oil prices above $50 a barrel.
Closer to home, China will see November figures for the services and composite indexes from Caixin later this morning. In October, the services PMI had a score of 52.4 and the composite was at 52.9.