China Stock Market Likely To Crack Resistance At 3,100 Points

(RTTNews) - The China stock market has moved higher in three straight sessions, gathering almost 70 points or 2.2 percent along the way. The Shanghai Composite Index now sits just beneath the 3,090-point plateau and it's expected to open in the green again on Monday.

The global forecast for the Asian markets is positive on upbeat inflation data and support from the oil and technology companies. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The SCI finished sharply higher on Friday following gains from the property stocks and resource companies, while the financials were soft.

For the day, the index climbed 35,74 points or 1.17 percent to finish at 3,088.64 after trading between 3,054.98 and 3,092.43. The Shenzhen Composite Index jumped 30.16 points or 1.78 percent to end at 1,728.49.

Among the actives, Industrial and Commercial Bank of China tumbled 1.64 percent, while Bank of China retreated 1.94 percent, China Construction Bank declined 1.66 percent, China Merchants Bank collected 0.23 percent, Bank of Communications stumbled 1.30 percent, China Life Insurance jumped 1.69 percent, Jiangxi Copper soared 3,71 percent, Aluminum Corp of China (Chalco) spiked 2.45 percent, Yankuang Energy surrendered 1.69 percent, PetroChina climbed 1.33 percent, Huaneng Power shed 0.53 percent, China Shenhua Energy skidded 1.03 percent, Gemdale soared 5.94 percent, Poly Developments skyrocketed 8.00 percent, China Vanke surged 4.89 percent and China Petroleum and Chemical (Sinopec) was unchanged.

The lead from Wall Street is solid as the major averages opened higher on Friday and remained in the green throughout the trading day.

The Dow climbed 153.86 points or 0.40 percent to finish at 38,239.66, while the NASDAQ surged 316.10 points or 2.02 percent to end at 15,927.90 and the S&P 500 rallied 51.54 points or 1.02 percent to close at 5.099.96.

For the week, the NASDAQ spiked 4.2 percent, the S&P 500 jumped 2.7 percent and the Dow added 0.7 percent.

The rally on Wall Street came amid a positive reaction to some of the latest earnings news from big-name tech companies such as Alphabet (GOOGL), software giant Microsoft (MSFT) and Snap (SNAP).

Traders also reacted positively to closely watched readings on inflation released by the Commerce Department showing consumer prices in the U.S. increased in line with estimates in March.

Treasury yields moved lower following the release of the report, which may have helped mitigate any negative response to the data.

Oil prices edged higher on Friday on optimism about the outlook for oil demand and concerns about supply. West Texas Intermediate Crude oil futures for June ended higher by $0.28 or 0.34 percent at $83.85 a barrel. WTI crude futures gained 0.85 percent in the week.