Over the past four sessions, the China stock market has consistently experienced growth, accelerating by over 150 points or 5.5 percent. The current Shanghai Composite Index stands just above the 2,910-point plateau, although speculation suggests that the rally may slow down on Monday.
In light of anticipated earnings news and a forthcoming FOMC rate decision and statement, the global forecast for the Asian markets remains unclear. The European markets showed growth, while the U.S. markets were mixed; it is expected that the Asian markets will follow a similar pattern.
On Friday, the Shanghai Composite Index (SCI) closed with a slight increase, driven by gains in financial companies, properties, resources, and energy firms. The index concluded at 2,910.22, representing a 0.14 percent rise, or 4.11 points. In contrast, the Shenzhen Composite Index fell 0.71 percent, or 11.94 points, finishing at 1,678.04.
Turning to notable activity, both Industrial and Commercial Bank of China and Aluminum Corp of China (Chalco) saw increases of 1.60 percent. Meanwhile, Bank of China surged by 3.13 percent, China Construction Bank rose by 2.09 percent, and China Merchants Bank rose slightly by 0.71 percent. Interestingly, China Life Insurance experienced a small drop of 0.24 percent. Other key performers included Yankuang Energy and PetroChina, seeing a growth of 1.97 percent and 6.38 percent respectively, whilst China Petroleum and Chemical (Sinopec) fell by 1.19 percent.
The U.S.-based Wall Street was fluctuant, beginning with a downturn on Friday but recovering by midday. However, it ended the day with a mixed result. The Dow saw an increase of 0.16 percent, to conclude at 38,109.43, whereas the NASDAQ fell 0.36 percent closing at 15,455.36 and the S&P 500 saw a marginal decline of 0.07 percent, finishing at 4,890.97. Total weekly growth was recorded by the S&P 500 (1.1 percent), the NASDAQ (0.9 percent), and the Dow (0.7 percent).
Doubt cast by disappointing earnings from semiconductor leader, Intel (INTC), was offset by better than predicted consumer price inflation data. The Commerce Department also revealed a report indicating a larger than anticipated deceleration in the annual core consumer price growth rate for December.
Investors were likely hesitant to make significant financial movements owing to the upcoming announcement of the Fed's monetary policy. While it is generally expected that interest rates will remain the same, investors are anticipated to be particularly attentive to any hints about potential rate cuts.
On Friday, optimism around the demand outlook for crude oil - sparked by positive U.S. economic data and new stimulus from the Chinese central bank - led to growth in crude oil futures. A 0.84 percent, or $0.65, rise was witnessed in West Texas Intermediate Crude oil futures for March, bringing them to $78.01 a barrel. On a weekly basis, a marked 6 percent spike in WTI crude futures was recorded.
