Lower Open Anticipated For China Stock Market

(RTTNews) - Ahead of the weeklong break for the National Day holiday, the China stock market had finished lower in three straight sessions, sinking more than 65 points or 2.2 percent along the way. The Shanghai Composite Index now sits just beneath the 3,025-point plateau and it's likely to catch to the downside Monday on missed sentiment.

The global forecast for the Asian markets is broadly negative after better than expected U.S. employment data raised grace concerns over the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are also tipped to open in similar fashion.

The SCI finished modestly lower on September 30 as losses from the energy and insurance companies were mitigated by support from the financials and properties.

For the day, the index shed 16.81 points or 0.55 percent to finish at 3,024.39 after trading between 3,021.93 and 3,054.61. The Shenzhen Composite Index dropped 25.20 points or 1.30 percent to end at 1,912.00.

Among the actives, Industrial and Commercial Bank of China collected 0.46 percent, while Bank of China climbed 1.31 percent, China Construction Bank perked 0.18 percent, China Merchants Bank strengthened 151 percent, Bank of Communications advanced 0.87 percent, China Life Insurance shed 0.44 percent, Jiangxi Copper gained 0.79 percent, Aluminum Corp of China (Chalco) rallied 2.23 percent, Yankuang Energy lost 0.50 percent, PetroChina rose 0.39 percent, China Petroleum and Chemical (Sinopec) improved 0.70 percent, Huaneng Power fell 0.39 percent, China Shenhua Energy increased 0.73 percent, Gemdale skyrocketed 5.22 percent, Poly Developments soared 4.17 percent, China Vanke spiked 3.97 percent, China Fortune Land jumped 2.46 percent and Beijing Capital Development surged 4.53 percent.

The lead from Wall Street is brutal as the major averages opened deep in the red and only worsened as the day progressed.

The Down plunged 630.11 points or 2.11 percent to finish at 29,296.79, while the NASDAQ sank 289.14 points or 3.80 percent to end at 10,652.40 and the S&P 500 slumped 104.86 points or 2.80 percent to close at 3,639.66. For the week, the Dow surged 2.0 percent, the S&P 500 jumped 1.5 percent and the NASDAQ climbed 0.7 percent.

The sell-off on Wall Street came following the release of the Labor Department's closely watched monthly jobs report, which failed to ease concerns about the outlook for interest rates by coming in stronger than economists had anticipated.

The unemployment rate matched its lowest level since just before Covid-19 lockdowns began to take effect in February 2020, which was also matched in July. Unemployment has not been lower in over 50 years.

Treasury yields advanced following the release of the report, with the yield on the benchmark ten-year note moving higher for the third straight session.

Crude oil prices rose sharply Friday, continuing to find support from the OPEC decision last week to cut output by 2 million barrels per day. West Texas Intermediate Crude oil futures for November ended higher by $4.19 or 4.7 percent at $92.64 a barrel, settling at a five-week high.