RTTNews - The winning streak has reached three sessions for the China stock market, which has collected nearly 130 points or 4 percent on its way to a fresh 13-month closing high. The Shanghai Composite Index is closing on resistance at 3,100 points, although analysts do not expect the market to break through that barrier on Monday, perhaps easing slightly instead in a mild correction.
The global forecast for the Asian markets provides little in the way of guidance, especially with no lead from Wall Street as the U.S. bourses were closed on Friday in observance of Independence Day. With the absence of any fresh data, many investors are expected to remain on the sidelines - especially with Q2 earnings season kicking off later this week. The European markets finished slightly lower on Friday, and the Asian markets are expected to track flat to mildly negative.
The SCI finished modestly higher on Friday, thanks to solid gains among the property stocks and the coal producers.
For the day, the index gained 28.11 points or 0.92 percent to close at 3,088.37 after trading between 3,029.55 and 3,088.86 on turnover of 177.44 billion yuan. There were 515 gainers and 333 decliners, with 24 stocks finishing unchanged.
Among the gainers, China Merchants Property Development surged by 10 percent daily limit, while China Vanke climbed 6.97 percent, Poly Real Estate was up 5.21 percent, China Shenhua jumped 5.19 percent, Datong Coal gained 2.54 percent, Citic Securities added 1.54 percent, Haitong Securities rose 2.71 percent, Shanghai Pudong Development Bank rose 1.84 percent and China Construction Bank was up 0.63 percent.
Finishing lower, Industrial & Commercial Bank of China eased 0.36 percent, while Bank of China shed 0.64 percent, China Citic Bank fell 0.99 percent, Aluminum Corporation of China (Chalco) dropped 0.79 percent, Zijin Mining Co lost 1.39 percent and Jiangxi Copper Co retreated 2.24 percent.
The lead from the European markets is mildly negative as markets fell in light volume for the second straight day on Friday, as a report showed Eurozone retail sales dropped more than expected in May and mining stocks edged lower after copper prices declined. Eurozone retail sales fell 0.4 percent month-on-month in May following a revised increase of 0.1 percent in April, data released by the Eurostat showed. Economists had expected a drop of just 0.1 percent.
The FTSEurofirst 300 index of pan-European blue chips closed 0.06 percent lower at 842.52 points, while the narrower DJ Stoxx 50 index rose 0.06 percent to 2,077.28 points. Around Europe, Germany's DAX index fell 0.22 percent to 4,708.21, while the U.K.'s FTSE 100 index rose 0.05 percent to 4,236.28 and France's CAC 40 index surged up 0.10 percent to 3,119.51.
Metro, Germany's biggest retailer, slipped 2.5 percent, as European retail sales dropped more than economists estimated. BHP Billiton, the world's biggest miner, fell 1.4 percent, while Anglo American, the second biggest, declined 1.2 percent and Rio Tinto, the third biggest, slipped 2.2 percent. EDF, Europe's biggest power producer, dropped 4.5 percent after Morgan Stanley downgraded the stock to equal weight from overweight.
On the other hand, banking stocks were among the top gainers. HSBC, Europe's largest bank, rose 1.7 percent, while Royal Bank of Scotland, Britain's second largest bank, climbed 2.3 percent and Barclays, Britain's third largest bank, surged up 2.7 percent. BNP Paribas, France's largest bank, gained 2 percent and Deutsche Bank, Germany's biggest lender, added 1.7 percent.
In economic news, Taiwan is on Monday scheduled to announce June figures for its consumer and wholesale price indices. Inflation is expected to retreat 1.5 percent on year following the 0.08 percent annual contraction in May. WPI is called lower by 14.44 percent on year after falling an annual 13.45 percent in the previous month.
In economic news, People's Bank of China Governor Zhou Xiaochuan said on Friday there is a need to pay adequate attention to the micro causes of the current crisis and strengthen regulation. Addressing a global think tank summit in Beijing, Zhou said, The causes for the outbreak of this crisis were very complex. Factors both at the macro and micro levels had played some roles.
Zhou said the crisis originated from Wall Street and many indisputable facts have established that micro factors had played an overwhelmingly important role in causing this crisis. Further, he noted that to what extent macro factors have contributed to the crisis has always been subject to dispute, including the role of global imbalances.
For comments and feedback: contact firstname.lastname@example.org