FX.co ★ China Stock Market May Cut Into Friday's Losses

The China stock market on Friday concluded a three-day winning streak, during which it gained over 35 points or 1 percent. The Shanghai Composite now hovers just below the 3,270 mark, with a potential recovery anticipated on Monday.

The global outlook appears positive, bolstered by rising oil prices. European and U.S. markets saw gains on Friday, suggesting that Asian markets may follow a similar trend as they open on Monday.

On Friday, the Shanghai Composite Index (SCI) experienced a sharp decline, with losses spanning all sectors, particularly affecting resource, property, and financial companies. The index dropped 103.21 points or 3.06 percent to close at a daily low of 3,267.19, having reached an intraday high of 3,372.00. Meanwhile, the Shenzhen Composite Index fell by 72.10 points or 3.54 percent, concluding the day at 1,966.91.

Noteworthy performers included Industrial and Commercial Bank of China, which fell by 1.31 percent; Bank of China which decreased by 1.01 percent; China Construction Bank down 1.26 percent; and China Merchants Bank, which slipped 2.62 percent. Agricultural Bank of China retreated 1.47 percent, China Life Insurance plunged 5.90 percent, Jiangxi Copper sank 3.72 percent, Aluminum Corp of China (Chalco) declined 3.53 percent, and Yankuang Energy dropped 2.90 percent. Additionally, PetroChina fell 1.23 percent, China Petroleum and Chemical (Sinopec) decreased by 0.95 percent, Huaneng Power declined 2.92 percent, China Shenhua Energy slid 3.37 percent, Poly Developments took a hit of 3.28 percent, China Vanke lost 3.00 percent, while Gemdale remained unchanged.

The mood from Wall Street was optimistic, with the major indexes posting gains as trading concluded on Friday.

The Dow Jones Industrial Average jumped 426.16 points or 0.97 percent, reaching a record high of 44,296.51. The NASDAQ, although up by a modest 31.23 points or 0.16 percent, closed at 19,003.65. The S&P 500 rose by 20.63 points or 0.35 percent, finishing at 5,969.34.

Weekly performance saw the Dow gain 2.0 percent, while both the NASDAQ and the S&P 500 climbed by 1.7 percent.

This market progression occurred despite a dip in Nvidia (NVDA) shares, which declined by 3.2 percent. This was in reaction to better-than-expected third-quarter earnings and revenue.

In U.S. economic developments, the University of Michigan's revised data indicated a slight improvement in consumer sentiment for November, less than anticipated but still the highest since April.

Oil prices increased on Friday, driven by escalating concerns regarding the Russia-Ukraine conflict. West Texas Intermediate Crude oil futures for January advanced $1.14 or 1.6 percent, closing at $71.24 per barrel, marking a weekly gain of 6.5 percent.