The China stock market has finished lower in three straight sessions, surrendering almost 75 points or 2.3 percent along the way. The Shanghai Composite Index now rests just above the 3,140-point plateau and it’s expected to be rangebound on Monday.
The global forecast for the Asian markets offers little clarity amid a lack of catalysts, although a drop in crude oil prices should limit any upside. The European and U.S. markets were mixed and flat, and the Asian bourses figure to follow that lead.
The SCI finished modestly lower on Friday as losses from the oil companies and properties were mitigated by support from the financials and insurance stocks.
For the day, the index fell 13.35 points or 0.42 percent to finish at 3,141.30 after trading between 3,131.07 and 3,156.73. The Shenzhen Composite Index skidded 17.02 points or 0.93 percent to end at 1,810.03.
Among the actives, Bank of China collected 0.26 percent, while Industrial and Commercial Bank of China added 0.17 percent, Agricultural Bank of China gained 0.55 percent, Bank of Communications and China Life both picked up 0.16 percent, Ping An Insurance advanced 0.51 percent, China Petroleum and Chemical (Sinopec) shed 0.57 percent, PetroChina tumbled 1.45 percent, China Vanke dropped 0.98 percent and China Construction Bank was unchanged.
The lead from Wall Street is flat to lower as stocks turned in a lackluster performance on Friday, bouncing back and forth across the unchanged line before closing mixed.
The Dow shed 58.67 points or 0.24 percent to finish at 24,753.09, the NASDAQ added 9.42 points or 0.13 percent to 7,433.85, and the S&P fell 6.43 points or 0.24 percent to 2,721.33. For the week, the NASDAQ jumped 1.1 percent, the Dow added 0.2 percent and the S&P rose 0.3 percent.
The choppy trading came as traders were away from their desks ahead of the long Memorial Day weekend. Geopolitical uncertainty also kept some traders on the sidelines after President Donald Trump’s decision to call off the historic summit with North Korean leader Kim Jong Un.
In economic news, the Commerce Department noted a bigger than expected decrease in durable goods orders in April. Also, the University of Michigan unexpectedly saw a drop in consumer sentiment in May.
Energy stocks saw substantial weakness amid a steep drop by the price of crude oil. Crude for July delivery plummeted $2.83 to $67.88 a barrel following reports oil producing nations are considering easing production limits.