China Stock Market May Remain Rangebound

(RTTNews) - The China stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had risen almost 25 points or 0.8 percent. The Shanghai Composite Index now sits just beneath the 3,300-point plateau although it's likely to bounce higher again on Monday.

The global forecast for the Asian markets is positive on easing tariff tensions between the United States and China. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The SCI finished slightly lower on Friday as losses from the financial shares and properties were mitigated by support from the resource stocks.

For the day, the index dipped 2.23 points or 0.07 percent to finish at 3,295.06 after trading between 3,288.75 and 3,305.26. The Shenzhen Composite Index rose 5.99 points or 0.31 percent to end at 1,915.65.

Among the actives, Industrial and Commercial Bank of China shed 0.41 percent, while Bank of China dropped 0.88 percent, Agricultural Bank of China sank 0.72 percent, China Merchants Bank slipped 0.31 percent, Bank of Communications lost 0.52 percent, China Life Insurance skidded 0.95 percent, Jiangxi Copper dipped 0.18 percent, Aluminum Corp of China (Chalco) rallied 2.01 percent, Yankuang Energy rose 0.24 percent, PetroChina declined 0.50 percent, China Petroleum and Chemical (Sinopec) fell 0.35 percent, China Shenhua Energy slumped 0.67 percent, Gemdale plunged 4.42 percent, Poly Developments tumbled 1.13 percent, China Vanke was down 0.42 percent and Huaneng Power was unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Friday but a late rally pushed them all into the green by the close.

The Dow rose 20.10 points or 0.05 percent to finish at 40,113.50, while the NASDAQ rallied 216.94 points or 1.26 percent to close at 17,382.94 and the S&P 500 climbed 40.44 points or 0.74 percent to end at 5,525.21. For the week, the NASDAQ spiked 6.7 percent, the S&P 500 surged 4.6 percent and the Dow shot up by 2.5 percent.

The volatility on the day came as traders kept a close eye on the developments on the trade front, with President Donald Trump refuting China's claims that the two countries have not held any trade negotiations.

Several reports citing U.S. businesses also said China has exempted some U.S. imports from its 125 percent tariffs.

In U.S. economic news, the University of Michigan said consumer sentiment in the U.S. deteriorated less than previously estimated in the month of April.

Crude oil futures moved modestly higher on Friday amid signs of easing trade tensions between the U.S. and China. West Texas Intermediate crude for June delivery rose $0.23 or 0.4 percent to $63.02 a barrel. For the week, crude for June delivery tumbled $0.99 a barrel or 1.6 percent.