China Stock Market Draw A Red Light For Monday's Trade

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(RTTNews) – The China stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had jumped almost 100 points or 3 percent. The Shanghai Composite index now sits just above the 3,400-point plateau and it’s predicted to see continued consolidation again on Monday.

The global forecast for the Asian markets is soft on lingering bond yield concerns, although technology and oil stocks may offer support. The European markets were down and the U.S bourses were mixed and the Asian markets figure to split the difference.

The SCI finished sharply lower on Friday following losses from the financials, properties and resource stocks.

For the day, the index dropped 58.41 points or 1.69 percent to finish at 3,404.66 after trading between 3,389.29 and 3,439.52. The Shenzhen Composite Index sank 42.59 points or 1.90 percent to end at 2,194.91.

Among the actives, Industrial and Commercial Bank of China retreated 2.19 percent, while Bank of China dropped 0.91 percent, China Construction Bank tumbled 2.83 percent, China Merchants Bank plummeted 4.57 percent, Bank of Communications skidded 1.07 percent, China Life Insurance tanked 3.33 percent, Jiangxi Copper surrendered 2.23 percent, Aluminum Corp of China (Chalco) declined 2.81 percent, Yanzhou Coal climbed 1.42 percent, PetroChina sank 2.04 percent, China Petroleum and Chemical (Sinopec) plunged 4.05 percent, Baoshan Iron advanced 1.12 percent, Gemdale lost 2.55 percent, Poly Developments shed 3.87 percent and China Vanke cratered 4.59 percent.

The lead from Wall Street continues to be inconsistent, with only the tech-heavy NASDAQ moving higher on Friday.

The Dow tumbled 234.33 points or 0.71 percent to finish at 32,627.97, while the NASDAQ jumped 99.07 points or 0.76 percent to end at 13,215.24 and the S&P eased 2.36 points or 0.06 percent to close at 3,913.10. For the week, the Dow fell 0.5 percent, the NASDAQ and S&P both slid 0.8 percent.

The rebound by the NASDAQ came as traders look to pick up technology stocks at reduced levels following the 3 percent nosedive by the tech-heavy index on Thursday.

Traders also kept a close eye on activity in the bond market after a spike in treasury yields on Thursday, although yields spent much of the session lingering near the unchanged line.

Financial stocks also moved to the downside after the Federal Reserve said a temporary change to the supplementary leverage ratio, or SLR, for depository institutions will expire as scheduled at the end of this month.

Crude oil futures closed higher on Friday, rebounding after five successive days of losses, but still ended with a sharp weekly loss. West Texas Intermediate Crude oil futures for April ended up $1.42 or 2.4 percent at $61.42 a barrel.

Closer to home, China will see March prime rate information for one- and five-year loans later today; previously, they were at 3.85 percent and 4.65 percent, respectively.