Volatility In Store For China Stock Market

(RTTNews) - Ahead of the long break for National Day, the China stock market had moved higher in two straight sessions, collecting almost 10 points or 0.3 percent along the way. The Shanghai Composite Index now sits just above the 3,110-point plateau and it's probably in for a wild ride after being off for nearly two weeks.

The global forecast for the Asian markets is murky, with solid market leads offset by the violent conflict between Israel and Hamas that erupted over the weekend. The European and U.S. markets were up and the Asian markets may follow suit.

The SCI finished slightly higher on September 28 following gains from the financials, weakness from the resource stocks and a mixed picture from the property sector.

For the day, the index rose 3.16 points or 0.10 percent to finish at 3,110.48 after trading between 3,105.94 and 3,121.84. The Shenzhen Composite Index gained 8.31 points or 0.44 percent to end at 1,910.28.

Among the actives, Industrial and Commercial Bank of China collected 0.65 percent, while Bank of China improved0.80 percent, China Construction Bank jumped 1.78 percent, China Merchants Bank added 0.46 percent, Bank of Communications perked 0.17 percent, China Life Insurance tumbled 1.81 percent, Jiangxi Copper sank 0.77 percent, Aluminum Corp of China (Chalco) fell 0.32 percent, Yankuang Energy gained 0.40 percent, PetroChina dipped 0.25 percent, China Petroleum and Chemical (Sinopec) retreated 1.46 percent, Huaneng Power shed 0.51 percent, China Shenhua Energy climbed 1.10 percent, Poly Developments lost 0.31 percent, China Vanke was up 0.23 percent and Gemdale was unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Friday, quickly moved higher and finished well in the green.

The Dow surged 287.98 points or 0.87 percent to finish at 33,407.58, while the NASDAQ soared 211.54 points or 1.60 percent to end at 13,431.34 and the S&P 500 rallied 50.31 points or 1.18 percent to close at 4,308.50.

For the week, the NASDAQ jumped 1.6 percent, the S&P added 0.5 percent and the Dow dipped 0.3 percent.

The early weakness on Wall Street followed the release of a Labor Department report showing employment in the U.S. surged much more than expected in September.

The report triggered a spike by treasury yields amid renewed concerns about the outlook for interest rates, with yields once again soaring to their highest levels in over 16 years. But treasury yields pulled back as the day progressed, fueling the subsequent rebound on Wall Street.

Crude oil prices climbed higher Friday following recent losses, after data showed stronger than expected growth in U.S. non-farm payroll employment in September. West Texas Intermediate Crude oil futures for November added $0.48 or 0.6 percent at $82.79 a barrel. But WTI crude futures shed 9 percent in the week.