China Stock Market May Take Further Damage On Monday

(RTTNews) - The China stock market on Friday snapped the three-day winning streak in which it had climbed more than 100 points or 2.6 percent. The Shanghai Composite Index now rests just beneath the 3,900-point plateau and it's tipped to open in the red again on Monday.

The global forecast for the Asian markets is bleak on concerns of an escalation in the trade war between U.S. and China. The European and U.S. markets were sharply lower and the Asian bourses are expected to follow that lead.

The SCI finished modestly lower on Friday following mixed performances from the financial shares, property stocks and resource companies.

For the day, the index slumped 36.94 points or 0.94 percent to finish at 3,897.03 after trading between 3,886.30 and 3,933.01. The Shenzhen Composite Index dropped 44.25 points or 1.74 percent to end at 2,505.71.

Among the actives, Agricultural Bank of China jumped 1.94 percent, while China Merchants Bank fell 0.37 percent, China Life Insurance perked 0.10 percent, Jiangxi Copper skyrocketed 7.84 percent, Aluminum Corp of China (Chalco) shed 0.69 percent, Yankuang Energy spiked 2.86 percent, China Petroleum and Chemical (Sinopec) rise 0.19 percent, Huaneng Power added 0.27 percent, China Shenhua Energy improved 0.84 percent, Gemdale climbed 1.86 percent, Poly Developments gained 0.63 percent, China Vanke lost 0.59 percent and Industrial and Commercial Bank of China and PetroChina were unchanged.

The lead from Wall Street is broadly negative as the major averages opened roughly flat on Friday put plummeted in the late morning and finished deep in the red at session lows.

The Dow plunged 878.82 points or 1.90 percent to finish at 45,479.60, while the NASDAQ crashed 820.20 points or 3.56 percent to close at 22,204.43 and the S&P 500 stumbled 182.60 points or 2.71 percent to end at 6,552.51.

For the week, the Dow dove 2.7 percent, the NASDAQ slumped 2.5 percent and the S&P sank 2.4 percent.

The sell-off on Wall Street came after President Donald Trump threatened to retaliate against China's expansion of export controls on rare earths. Trump accused China of "becoming very hostile" in a post on social media platform Truth Social and threatened a "massive increase" in tariffs on Chinese products coming into the U.S.

In U.S. economic news, a report released by the University of Michigan said its reading on U.S. consumer sentiment was unchanged in October, while year-ahead inflation expectations ebbed to 4.6 percent from 4.7 percent in September.

Crude oil prices tumbled on Friday after Trump threatened to massively increases tariffs on China in retaliation for its expansion of export controls on rare earths. West Texas Intermediate crude for November delivery was down $2.69 or 4.37 percent at $58.82 per barrel.