FX.co ★ China Bourse May Run Out Of Steam On Friday

The Chinese stock market has enjoyed consistent growth in recent sessions, accumulating over 30 points or an overall growth of 1 percent. The Shanghai Composite Index is now positioned slightly beyond the 3,050-point threshold, but there's some uncertainty about whether this positive trend will persist on Friday.

The global forecast paints a mixed picture for Asian markets, as there are concerns regarding the future path of interest rates. The European markets have had a variable performance, while the American markets have experienced a downtrend, and it's expected that Asian markets might follow suit.

On Thursday, the Shanghai Composite Index (SCI) reported marginal gains, thanks to a positive performance by finance sector shares, property stocks, and resource companies. The SCI added 8.08 points or 0.27 percent, reaching 3,052.90 points, after trading between 3,034.65 and 3,060.26. Likewise, the Shenzhen Composite Index also saw a slight increase of 3.52 points or 0.21 percent, wrapping up the day at 1,698.34.

Some of the prominent players included Industrial and Commercial Bank of China, which increased by 0.37 percent. Similarly, Bank of China and Bank of Communications reported an increase of 0.43 percent. China Merchants Bank exhibited a significant rally of 2.81 percent, while China Life Insurance and Jiangxi Copper also posted gains. On the other side, Huaneng Power experienced a dip of 2.57 percent.

However, the signals from Wall Street are less optimistic. On Thursday, major averages opened lower and remained anchored in the red throughout the day. The Dow nosedived 375.12 points or 0.98 percent to end at 38,085.80, and NASDAQ fell 100.99 points or 0.64 percent to close at 15,611.76.

Negative reactions to financial reports from Meta Platforms and IBM played a significant part in the early Wall Street sell-off. Furthermore, the U.S economy's slower-than-anticipated growth in the first quarter of 2024, as reported by the Commerce Department, has also added to investors' worries as it lowers the likelihood of the Federal Reserve reducing interest rates any time soon.

Despite this, crude oil futures managed to recover from recent losses. Even with data indicating that the U.S first-quarter GDP growth was slower than expected, West Texas Intermediate Crude oil futures for June ended up gaining $0.76 or 0.92% to close at $83.57 a barrel.