China Stock Market May Turn Lower Again On Monday

(RTTNews) - The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the five-day winning streak in which it had jumped almost 160 points or 4.2 percent. The Shanghai Composite Index now sits just above the 3,925-point plateau although it's likely to move back to the downside again on Monday.

The global forecast for the Asian markets is weak on profit taking and rising oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference on Monday.

The SCI finished barely higher on Friday as gains from the technology stocks were capped by weakness from the energy, resource and retail sectors.

For the day, the index perked 0.22 points or 0.01 percent to finish at 3,927.18 after trading between 3,903.70 and 3,932.64. The Shenzhen Composite Index rose 8.62 points or 0.33 percent to end at 2,590.21.

The lead from Wall Street is soft as the major averages opened slightly higher on Friday but quickly tailed off and fell under water for the balance of the day.

The Dow sank 107.59 points or 0.20 percent to finish at 53,732.41, while the NASDAQ shed 73.84 points or 0.28 percent to end at 26,729.16 and the S&P 500 dipped 13.23 points or 0.17 percent to close at 7,785.23.

For the week, the Dow slid 0.6 percent, while the NASDAQ crept up 0.1 percent and the S&P 500 rose 0.4 percent.

The modest pullback on Wall Street reflected profit taking following the upward move seen in the two previous sessions, which lifted the S&P 500 to a record intraday high above 7,800. Also, the tech-heavy NASDAQ reached its highest closing level in over two months.

In economic news, the University of Michigan noted a significant deterioration in U.S. consumer sentiment in August. Also, the Commerce Department reported an unexpected decline in U.S. retail sales in July.

Crude oil prices surged on Friday as the U.S. and Iran continue to spar on their demands, leaving the Strait of Hormuz shut for shipping traffic. West Texas Intermediate crude for September delivery was up $1.05 or 1.29 percent at $82.30 per barrel.

Closer to home, China is scheduled to release a batch of data Monday morning, including July figures for industrial production, retail sales, fixed asset investment, unemployment and house prices.

Industrial production is expected to rise 5.0 percent on year, easing from 5.3 percent in June. Sales are seen higher by an annual 1.5 percent, up from 1.0 percent in the previous month. FAI is expected to slump 6.2 percent on year after falling 5.7 percent a month earlier. The jobless rate is expected to creep up to 5.1 percent from 5.0 percent in June. House prices fell an annual 3.3 percent in June.