The Singapore stock market has experienced a downward trend over the past two sessions, with the Straits Times Index (STI) declining by over 40 points, or 1.1%. Currently positioned just below the 3,780-mark, further losses are anticipated on Thursday.
The global outlook for Asian markets indicates a potential major consolidation due to worsening interest rate forecasts. While European markets exhibited mixed, stable activity, U.S. exchanges saw significant declines, which is likely to influence Asian market performance.
The STI concluded modestly down, impacted by financial sector losses and mixed returns from the real estate and industrial sectors.
On the most recent trading day, the STI slipped by 20.31 points or 0.53% to close at 3,779.62, with trading fluctuating between 3,778.47 and 3,799.70.
In terms of market activity, City Developments and UOL Group both decreased by 0.19%, Comfort DelGro fell by 0.68%, and DBS Group dropped significantly by 1.90%. Meanwhile, Frasers Logistics & Commercial Trust lost 0.56%, Oversea-Chinese Banking Corporation declined by 0.71%, SATS advanced by 0.56%, SembCorp Industries gained 0.93%, Singapore Technologies Engineering rose by 1.11%, SingTel increased by 0.96%, Thai Beverage added 0.89%, and Yangzijiang Shipbuilding slipped by 0.35%. Several other firms, including Genting Singapore, Hongkong Land, and Keppel DC REIT, remained unchanged.
From Wall Street, the sentiment is decidedly negative, with major averages beginning flat midweek, only to plummet following the Federal Open Market Committee's (FOMC) interest rate announcement.
The Dow Jones Industrial Average sharply declined by 1,123.03 points or 2.58% to settle at 42,326.87. Similarly, the NASDAQ dropped 716.37 points or 3.56% to 19,392.69, while the S&P 500 decreased by 178.45 points or 2.95% to conclude at 5,872.16.
This steep sell-off followed the Federal Reserve's expected decision to reduce interest rates by a quarter-point, coupled with a revised outlook indicating fewer rate cuts than previously anticipated for the coming year.
Although the rate cut was widely predicted, investor focus shifted to the Fed's updated economic projections. These suggest interest rates will fall within 3.75% to 4.0% by the close of 2025, adjusted from the previous forecast of 3.25% to 3.50% in September.
Federated Reserve's projections now imply the implementation of only two rate reductions next year, as opposed to four forecasted earlier, driven by expectations of higher inflation through 2025.
On the commodities front, crude oil prices increased on Wednesday. This rebound emerged after inventory data revealed a decline in crude stocks and a rise in gasoline inventories for the previous week. West Texas Intermediate (WTI) crude oil futures for January saw an uptick of $0.50 or 0.71%, settling at $70.58 per barrel.
The material has been provided by InstaForex Company -
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