FX.co ★ China Stock Market Tipped To Open In The Red On Monday

The China stock market has been on an upward trajectory for three consecutive sessions, rising by more than 30 points or 1.1 percent. The Shanghai Composite Index (SCI) now rests just above the 2,735-point mark, though there are indications that the rally may pause on Monday.

Globally, the outlook for Asian markets is muted, with expectations of profit-taking after substantial gains late last week. European markets experienced a downturn, and the U.S. stock indices showed mixed results with minimal changes, suggesting that Asian markets may see a moderate impact.

On Friday, the SCI recorded modest gains driven by financial, property, and resource sectors. The index inched up by 0.79 points or 0.03 percent to close at 2,736.81, after fluctuating between 2,717.95 and 2,741.16. Meanwhile, the Shenzhen Composite Index declined by 2.34 points or 0.16 percent, settling at 1,494.66.

Among the active stocks, Industrial and Commercial Bank of China rose by 0.35 percent, Bank of China added 0.65 percent, China Construction Bank gained 0.70 percent, and China Merchants Bank climbed 0.39 percent. Bank of Communications saw a 0.61 percent increase, Jiangxi Copper strengthened by 1.48 percent, and Aluminum Corp of China (Chalco) rallied 1.15 percent. Other notable movements included a 1.05 percent rise for Yankuang Energy, a 0.76 percent improvement for PetroChina, and a 0.95 percent advance for China Petroleum and Chemical (Sinopec). Huaneng Power retreated by 1.22 percent, while China Shenhua Energy increased by 1.32 percent. In the property sector, Gemdale jumped 1.24 percent, with Poly Developments and China Vanke both spiking 1.77 percent. China Life Insurance remained unchanged.

Wall Street provided limited direction as major averages opened lower on Friday and largely remained subdued, with the Dow Jones Industrial Average eking out a slight gain by the session's end. The Dow added 38.16 points or 0.09 percent to finish at a record 42,063.36, while the NASDAQ dropped 65.68 points or 0.36 percent to close at 17,948.32, and the S&P 500 fell 11.09 points or 0.19 percent to end at 5,702.55.

For the week, the Dow jumped 1.6 percent, the NASDAQ climbed 1.5 percent, and the S&P 500 rallied 1.4 percent.

The early weakness on Wall Street was partly due to profit-taking, as traders locked in gains following a significant rally on Thursday, driven by a positive response to the Federal Reserve's decision to cut interest rates by half a percentage point.

Selling pressure diminished as the session progressed, with traders hesitant to make substantial moves while questioning what the next market catalyst will be now that the Fed's first rate cut is behind them.

Oil futures settled slightly lower on Friday, mainly due to profit-taking by traders after solid gains earlier in the week. West Texas Intermediate Crude oil futures for October eased by $0.03 to $71.92 a barrel.