Chinese stocks set to rebound as holidays return

(RTTNews) – Ahead of the Lunar New Year holiday week, the Chinese stock market had finished lower in two consecutive sessions, losing more than 90 points or 2.8% along the way. The Shanghai Composite Index now sits just above the 3,360 plateau and is expected to open sharply higher on Monday as it catches up with the missed bullish sentiment.

The global outlook for Asian markets ranges from mixed to higher, with support from tech stocks and crude oil companies expected to lead the way higher. European markets were clean and US markets were mixed and Asian markets seem to be following the latter lead.

The SCI ended sharply lower on January 28 following losses in financials and resources, while the real estate sector was mixed.

For the day, the index lost 32.81 points or 0.97% to end at 3,361.44 after trading between 3,356.56 and 3,417.05. The Shenzhen Composite Index fell 0.04 points to end at 2,262.37

Among assets, Industrial and Commercial Bank of China lost 0.43%, while China Construction Bank fell 0.83%, China Merchants Bank fell 3.07%, Bank of Communications fell 1.04% , China Life Insurance fell 1.61%, Ping An Insurance fell 1.64%. Jiangxi Copper fell 0.30%, Aluminum Corp of China (Chalco) plunged 4.88%, Yankuang Energy fell 5.75%, PetroChina fell 4.20%, China Petroleum and Chemical (Sinopec ) fell 0.95%, Huaneng Power fell 4.52%, China Shenhua Energy fell 4.00%. %, Gemdale climbed 1.17%, Poly Developments gained 0.32%, China Vanke lost 0.54%, China Fortune Land jumped 1.23% and Bank of China and China Minsheng Bank remained unchanged .

Wall Street’s lead is mixed to higher as the leading averages were directionless on Monday, eventually ending on opposite sides of the line unchanged.

The Dow Jones fell 21.42 points or 0.06% to end at 35,089.74, while the NASDAQ jumped 219.19 points or 1.58% to end at 14,098.01 and the S&P 500 gained 23.09 points or 0.52% to close at 4,500.53. For the week, the NASDAQ gained 2.5%, the S&P added 1.5% and the Dow Jones rose 1.1%.

Traders reacted to much better than expected US jobs data from the Labor Department, which is good for the economic recovery but raised concerns about the interest rate outlook.

Expectations of more aggressive tightening from the Federal Reserve drove bond yields higher. The yield on long-term US 10-year Treasuries rose about 1.9% for the first time in more than two years.

In earnings news, Amazon, Snap, Pinterest, Salesforce.com, JP Morgan Chase, Goldman Sachs, Microsoft, Walt Disney, Chevron and American Express all had strong numbers.

Crude oil prices rose sharply on Friday and took the most active crude futures to their highest close in more than seven years. Growing concerns about supply disruptions fueled the rally, as did rising tensions between Russia and Ukraine. West Texas Intermediate crude oil futures for March ended up $2.04 or 2.3% at $92.31 a barrel, the highest settlement since Sept. 29, 2014. The contracts WTI crude oil futures gained more than 6% during the week.

Closer to home, China will deliver January results for its services and Caixin composite indices later this morning; in December, their scores were 53.1 and 53.0, respectively.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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