In recent trading sessions, the Singapore stock market has risen for four consecutive days, collectively gaining over 40 points, or roughly 1%. The Straits Times Index is now close to the 3,830-point mark. However, market momentum may slow down on Wednesday.
The broader forecast for Asian markets appears bearish due to renewed concerns over interest rate outlooks. European markets showed mixed results, while U.S. markets ended on a decline, suggesting Asian markets may follow suit.
On Tuesday, the STI showed slight improvement, buoyed by financial stocks. However, this was offset by weaknesses in property stocks and mixed outcomes in the industrial sector. The index closed up by 6.33 points, or 0.17%, finishing at 3,828.17, with trading ranging from 3,820.11 to 3,836.04.
Active stocks saw varied performance: CapitaLand Integrated Commercial Trust dipped 0.50%, while CapitaLand Investment dropped significantly by 2.27%. City Developments was down 0.39%, and Comfort DelGro declined by 0.68%. In contrast, DBS Group advanced by 1.25%. Genting Singapore fell 0.65%, Hongkong Land plunged by 2.26%, Keppel DC REIT gained 0.90%, and Keppel Ltd dropped 0.86%. Mapletree Pan Asia Commercial Trust fell 1.61%, and Mapletree Industrial Trust slid by 0.44%, while Mapletree Logistics Trust tumbled 1.53%. Oversea-Chinese Banking Corporation increased by 0.36%, SATS decreased 0.54%, while Seatrium Limited surged 2.27%. SembCorp Industries eased down 0.18%, Singapore Technologies Engineering declined 0.64%, SingTel fell 0.32%, Yangzijiang Shipbuilding dropped 1.01%, while securities such as Thai Beverage, Wilmar International, Yangzijiang Financial, Frasers Logistics & Commercial Trust, Frasers Centrepoint Trust, and Emperador remained unchanged.
Turning to Wall Street, the outlook is grim as the major indices began Tuesday positively but quickly turned sour, closing significantly lower. The Dow Jones Industrial Average fell by 178.20 points, or 0.42%, to settle at 42,528.36. The NASDAQ dropped sharply by 375.30 points or 1.89%, closing at 19,489.68, and the S&P 500 declined by 66.35 points or 1.11%, ending at 5,909.03.
The downturn in stocks is largely attributed to a notable increase in treasury yields, with the benchmark 10-year note reaching its highest closing level in eight months, stoking concerns over the future of interest rates. This came in response to positive U.S. economic data, including an unexpected rise in service sector activity in December as reported by the Institute for Supply Management. Additionally, the prices index hit a one-year high, fueling worries about persistent inflation. The Labor Department also reported a surprising increase in U.S. job openings in November.
Meanwhile, oil prices gained traction on Tuesday, influenced by potential supply constraints after China opted to reject imports from Iran and Russia, coupled with unusually cold weather in the U.S. West Texas Intermediate Crude oil futures for February saw an increase of $0.69 or 0.94%, closing at $74.25 per barrel.
The material has been provided by InstaForex Company -
www.instaforex.com
