China Bourse May Run Out Of Steam On Friday

(RTTNews) - The China stock market has moved higher in back-to-back sessions, gathering more than 30 points or 1 percent along the way. The Shanghai Composite Index now sits just above the 3,050-point plateau although the rally may stall on Friday.

The global forecast for the Asian markets is sift on concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The SCI finished slightly higher on Thursday following gains from the financial shares, property stocks and resource companies.

For the day, the index added 8.08 points or 0.27 percent to finish at 3,052.90 after trading between 3,034.65 and 3,060.26. The Shenzhen Composite Index rose 3.52 points or 0.21 percent to end at 1,698.34.

Among the actives, Industrial and Commercial Bank of China collected 0.37 percent, while Bank of China and Bank of Communications both added 0.43 percent, China Merchants Bank rallied 2.81 percent, China Life Insurance rose 0.35 percent, Jiangxi Copper strengthened 1.30 percent, Aluminum Corp of China (Chalco) soared 3.81 percent, Yankuang Energy improved 1.29 percent, PetroChina climbed 1.05 percent, China Petroleum and Chemical (Sinopec) increased 0.77 percent, Huaneng Power tumbled 2.57 percent, China Shenhua Energy gained 0.40 percent, Gemdale perked 0.31 percent, China Vanke was up 0.15 percent and China Construction Bank and Poly Developments were unchanged.

The lead from Wall Street is negative as the major averages opened lower on Thursday and remained solidly in the red throughout the session.

The Dow plunged 375.12 points or 0.98 percent to finish at 38,085.80, while the NASDAQ tumbled 100.99 points or 0.64 percent to close at 15,611.76 and the S&P 500 sank 23.21 points or 0.46 percent to end at 5,048.42.

A negative reaction to earnings news from Meta Platforms (META) and tech giant IBM Corp. (IBM) contributed to the early sell-off on Wall Street.

In economic news, the Commerce Department released a report showing the U.S. economy grew by much less than expected in the first quarter of 2024. Also, the Commerce Department said the personal consumption expenditures price index climbed more than expected.

Both of those economic results were bad news for investors as they damaged the likelihood of an interest rate cut by the Federal Reserve in the near future.

Crude oil futures settled higher on Thursday, recovering from recent losses, despite data showing slower than expected U.S. first-quarter GDP growth. West Texas Intermediate Crude oil futures for June ended higher by $0.76 or about 0.92% at $83.57 a barrel.