The Singapore stock market experienced a downturn on Wednesday, just a day after concluding a two-day decline where it lost almost 30 points, equal to 0.8 percent. Currently, the Straits Times Index is barely above the 3,790-point mark, but indications suggest a recovery by Thursday.
The positive global forecast for Asian markets is driven by increased optimism about the possible changes in interest rates. With the European and the majority of U.S. markets on the rise, it is probable that the Asian markets will mirror this trend.
On Wednesday, the STI ended slightly lower due to inconsistent performances from financials, trusts, real estate, and industrials. By end of day, the index had dropped 20.73 points, or 0.54 percent, to a final score of 3,792.82, fluctuating between 3,790.23 and 3,815.93 throughout the day.
Notably active companies included CapitaLand Integrated Commercial Trust, which gained 0.52 percent, and DBS Group, which slid by 0.73 percent. Hongkong Land saw a significant drop of 3.59 percent, while Thai Beverage enjoyed a 1.77 percent increase.
Wall Street's influence has been mixed. Major averages opened positively on Wednesday, but the Dow couldn't maintain its upward momentum. While the Dow dropped 99.27 points or 0.22 percent, the NASDAQ surged by 347.65 points or 1.77 percent, closing at a record 20,034.89. The S&P 500 climbed 49.28 points or 0.82 percent.
This boost in the markets is largely attributed to the release of crucial inflation data that came out as predicted. This in turn increased the confidence that the Federal Reserve will cut interest rates by a further quarter-point in the coming week. According to CME Group's FedWatch Tool, there is a 98.6 percent chance that the Fed will proceed with this rate cut at its December meeting.
Lastly, oil futures settled higher on Wednesday due to possible Russian sanctions by the European Union, an expected increase in demand from China, and data showcasing a rise in gasoline stockpiles. Consequently, West Texas Intermediate crude oil futures for January rose by $1.70 or 2.5 percent, closing at $70.29 per barrel.
The material has been provided by InstaForex Company -
www.instaforex.com
