Rally May Stall For China Stock Market

(RTTNews) - The China stock market has tracked higher in four straight sessions, gathering almost 80 points or 2.4 percent along the way. The Shanghai Composite Index now sits just beneath the 3,640-point plateau although it may run out of steam on Friday.

The global forecast for the Asian markets is murky, clouded by conflicting reports on U.S. tariffs. The European and U.S. markets were mixed and the Asian bourses figure to tick lower on profit taking.

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

For the day, the index rose 5.67 points or 0.16 percent to finish at 3,639.67 after trading between 3,622.52 and 3,645.12. The Shenzhen Composite Index slipped 1.12 points or 0.05 percent to end at 2,224.63.

Among the actives, Industrial and Commercial Bank of China collected 1.03 percent, while Bank of China climbed 1.06 percent, Agricultural Bank of China strengthened 1.36 percent, China Merchants Bank perked 0.07 percent, Bank of Communications added 0.52 percent, China Life Insurance dropped 0.94 percent, Jiangxi Copper fell 0.26 percent, Aluminum Corp of China (Chalco) rose 0.13 percent, Yankuang Energy rallied 2.10 percent, PetroChina gained 0.46 percent, China Petroleum and Chemical (Sinopec) increased 0.35 percent, Huaneng Power sank 0.92 percent, Gemdale spiked 2.42 percent, Poly Developments gathered 0.37 percent, China Vanke improved 0.47 percent and China Shenhua Energy was unchanged.

The lead from Wall Street offers little clarity as the major averages opened higher but quickly slumped and then spent the day hugging the line, ending little changed and on opposite sides.

The Dow stumbled 224.48 points or 0.51 percent to finish at 43,968.64, while the NASDAQ gained 73.27 points or 0.35 percent to close at 21,242.70 and the S&P 500 fell 5.06 points or 0.08 percent to end at 6,340.00.

The early strength on Wall Street came after President Donald Trump announced a 100 percent tariff on imports of semiconductors and chips but said companies that are building in the United States would be exempt.

Buying interest waned over the course of the session, however, as traders continued to express concerns about the economic impact of Trump's trade policies as new tariffs on dozens of countries took effect on Thursday.

In U.S. economic news, the Labor Department said first-time claims for U.S. unemployment benefits rose more than expected last week. Also, the Labor Department noted a significant rebound by labor productivity in the second quarter.

Crude oil prices fell Thursday on inconsistency in the U.S. stance on Russia and it's invasion on Ukraine. West Texas Intermediate crude for September delivery was down $0.49 or 0.76 percent at $63.86 per barrel.