Rally May Stall For China Stock Market

(RTTNews) - The China stock market has moved higher in two straight sessions, collecting almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now sits just above the 3,470-point plateau although it may be stuck in neutral on Monday.

The global forecast for the Asian markets is soft thanks to ongoing tariff concerns. The European markets were down and the U.S. bourses were closed for the July 4 holiday, and the Asian markets also figure to open in the red.

The SCI finished modestly higher on Friday as gains from the financial shares and oil companies were offset by weakness from the property and resource sectors.

For the day, the index rose 11.17 points or 0.32 percent to finish at 3,472.32 after trading between 3,455.49 and 3,497.22. The Shenzhen Composite Index slipped 8.96 points or 0.43 percent to end at 2,075.71.

Among the actives, Industrial and Commercial Bank of China strengthened 1.44 percent, while Bank of China rallied 1.42 percent, Agricultural Bank of China climbed 1.34 percent, China Merchants Bank advanced 0.99 percent, Bank of Communications jumped 1.86 percent, China Life Insurance collected 0.61 percent, Jiangxi Copper retreated 1.47 percent, Aluminum Corp of China (Chalco) fell 0.28 percent, PetroChina added 0.58 percent, China Petroleum and Chemical (Sinopec) rose 0.35 percent, Huaneng Power perked 0.27 percent, China Shenhua Energy improved 1.61 percent, Gemdale stumbled 1.59 percent, Poly Developments sank 0.49 percent, China Vanke lost 0.31 percent and Yankuang Energy was unchanged.

There is no lead from Wall Street, but the European stock markets were down amid concerns about U.S. tariffs.

With the July 9 deadline to strike deals with the U.S. just a few days away, U.S. President Donald Trump has announced that his government will send letters to trading partners outlining unilateral tariffs that will take effect on August 1.

The EU, which is pushing for an agreement in principle ahead of July 9, has acknowledged that a comprehensive deal is unlikely to be reached by the deadline.

There is also concern over Trump's "Big, Beautiful Bill," which will add at least $3.3 trillion to the country's already-mammoth national debt.

Crude oil prices slumped on Friday on easing geopolitical concerns in the Middle East. West Texas Intermediate crude for August delivery was down $0.51 or 0.76 percent to finish at $66.49 per barrel.