The Chinese stock market has followed a positive trajectory in recent sessions, accumulating more than 25 points or a 0.7 percent increase. The Shanghai Composite Index is positioned just below the 3,155-point mark, and is expected to make further gains on Monday.
The global forecast for the Asian markets indicates a mild upswing, even though there are conflicting elements within the interest rate outlook. While the European markets have seen growth and the U.S. exchanges have shown mixed stability, the Asian markets are likely to land somewhere in the middle.
On Friday, the Shanghai Composite Index (SCI) saw slight gains, buoyed by the financial and property sectors, while resource stocks fluctuated. The index rose 0.23 points or 0.01 percent to close at 3,154.55 after trading between 3,137.15 and 3,163.14. The Shenzhen Composite Index, on the other hand, saw a decrease of 12.83 points or 0.71 percent to finish at 1,783.77.
Key players within the market included the Industrial and Commercial Bank of China, which grew by 0.37 percent. Conversely, China Construction Bank witnessed a drop of 0.28 percent. Other noticeable transactions included China Merchants Bank, which rallied 2.24 percent, and Bank of Communications, which improved by 0.73 percent. In addition, Jiangxi Copper surged 3.16 percent while Aluminum Corp of China (Chalco) slid 0.25 percent.
The U.S. Wall Street started Friday on a high note but then softened its stance, leading to very minimal changes. The Dow saw an increase of 125.08 points or 0.3 percent to reach 39,512.84, while the NASDAQ dipped slightly by 5.40 points or 0.1 percent to close at 16,340.87. The S&P 500 saw a rise of 8.60 points or 0.2 percent, culminating at 5,222.68.
Switching focus back on interest rates, recently released data suggests softer conditions in the U.S. job market. This has bolstered investor confidence that the Federal Reserve may reduce interest rates in the coming months. However, a sharp drop in U.S. consumer sentiment coupled with an inflation surge has somewhat offset this sentiment.
Lastly, on Friday, crude oil prices took a hit over concerns about the Federal Reserve keeping interest rates high for an extended period, and additional uncertainty related to oil demand in light of indications of an economic slowdown. This situation led the West Texas Intermediate Crude oil futures for June to drop by $1.00, ending the session at $78.26 a barrel.
