The China stock market has been bleeding for the last two straight sessions after giving up two points during that period. However, experts claim that the Shanghai Composite Index would maintain its preferred threshold below the 3,085-point. It was also perceived that it would stop suffering by January 7, 2020 as they think tensions in the Middle East would not significantly affect the global market.
Recent events surrounding the Middle East were reported to be overdone making the global forecast for Asian markets favorable. It also made the traders more optimistic amidst geopolitical concerns as crude oil prices increase. It has also been revealed that European markets had been falling while the US and Asian markets have shown great improvement last Tuesday.
Last Monday, the Shanghai Composite Index was down 0.38 or 0.01 percent. It finished at 3,083.41 after it traded for 3,065.31 and 3,107.20. The report also claimed that the composite had gained 7.83 points or increased by 0.44 percent. It then ended at 1,768.68.
The trade gainers were the Industrial and Commercial Bank of China. It lost 0.33 percent while the Bank of China fell by 0.54 percent. Other banks that also experienced declines were China Construction Bank that fell by 0.94 percent; Ping An Insurance fell by 0.70 percent, Gemdale by 1.79 percent, China Life Insurance by 0.94 percent, and Poly Developments and China Vanke that declined by 1.69 percent and 1.68 percent, respectively.
There were banks, however, that showed improvement over the week. PetroChina gained by 4.71 percent including China Petroleum and Chemical (Sinopec) by 1.71 percent. China Shenhua also gained 1.19 percent since Tuesday.
When stocks opened on Monday, the lead from Wall Street showed positive values and finished in green. The Asian markets also gained momentum as The Dow climbed up by 58.50 points or 0.24 percent to 28,703.38. NASDAQ also gained by 50.70 points or 0.56 percent to 9.071.46. Following suit is S&P 500 who garnered 11.43 points amounting to 0.35 percent increase to 3,246.28.
The report claimed that Wall Street performed weaker over the weekend due to the geopolitical tensions that continue to haunt the global market. Moreover, as conflict continues to escalate between Tehran and Washington, traders still believe that the bustle between these countries would not have a major impact on the global economy.
The report claimed that the rise in crude oil prices might result in supply disruptions due to the existing conflict. However, traders remain optimistic as the West Texas Intermediate crude oil futures ended up at 0.22 USD or 0.4 percent. The February values for the stock were lodged at 63.27 USD per barrel.
