FX.co ★ China Stock Market May Stop The Bleeding On Monday

The Chinese stock market has seen declines for three consecutive sessions, losing over 30 points or about 1 percent in total. The Shanghai Composite Index is currently just below the 3,000-point threshold, but indications suggest support may be forthcoming on Monday.

The global outlook for Asian markets appears pessimistic, with oil and technology stocks expected to exert downward pressure. European markets have experienced losses, while U.S. markets were mixed and largely unchanged, suggesting Asian markets might perform somewhere in between.

On Friday, the Shanghai Composite Index dipped slightly due to losses in financial shares, property stocks, and resource companies. The index fell by 7.30 points or 0.24 percent to close at 2,998.14, after trading within a range of 2,985.93 to 3,011.91. The Shenzhen Composite Index also edged down by 1.54 points or 0.09 percent to finish at 1,654.32.

In active trading, Industrial and Commercial Bank of China decreased by 0.18 percent, Bank of China fell by 0.45 percent, China Construction Bank dropped by 0.14 percent, and China Merchants Bank declined by 0.91 percent. Other significant movements included Bank of Communications rising by 0.42 percent, Agricultural Bank of China falling by 1.18 percent, and China Life Insurance dropping by 0.32 percent. Resource companies also saw declines, with Jiangxi Copper losing 0.49 percent, Aluminum Corp of China (Chalco) falling by 0.79 percent, and Yankuang Energy decreasing by 0.60 percent.

The Wall Street lead is lackluster, with major averages opening lower on Friday and closing mixed with minimal changes. The Dow Jones Industrial Average gained 15.53 points or 0.04 percent to finish at 39,150.33, the NASDAQ lost 32.24 points or 0.18 percent to close at 17,689.36, and the S&P 500 fell by 8.55 points or 0.16 percent to end at 5,464.62.

For the shortened trading week, the Dow rose by 1.5 percent, the S&P 500 climbed by 0.6 percent, and the NASDAQ remained nearly the same. Wall Street experienced choppy trading as traders evaluated recent market activities, including the NASDAQ and S&P 500 touching new intraday highs before retreating.

Attention was also on Nvidia (NVDA), a significant market driver lately. Nvidia's shares pulled technology stocks down after declining by 3.2 percent on Friday, despite briefly surpassing Microsoft (MSFT) as the world's most valuable public company.

On the economic front, the National Association of Realtors reported that existing home sales in the U.S. fell in May, roughly aligning with expectations. Additionally, the Conference Board indicated that leading U.S. economic indicators declined more than anticipated last month.

Oil futures closed lower on Friday due to concerns over global oil demand and a strong U.S. dollar. West Texas Intermediate (WTI) crude oil for July delivery dropped by $0.56 or 0.7 percent to $80.73 a barrel but gained 3 percent over the week.