The Singapore stock market has experienced gains over the last three trading days, accruing close to 30 points, or 0.8 percent. Currently, the Straits Times Index (STI) hovers slightly over the 3,820 mark, but may exhibit little movement on Tuesday. Predictions for the Asian markets are mixed to leaning positive, with substantial backing expected from the technology sector. Recent European market trends have been downward, while U.S. markets showed a mixed performance, suggesting that Asian markets may mirror the latter. On Monday, the STI posted a slight gain, buoyed by telecommunications, offset by weak performances in industrial sectors and mixed activity in financial stocks. Specifically, the index rose by 10.68 points, or 0.28 percent, concluding at 3,821.03, after fluctuating between 3,807.40 and 3,824.16 throughout the day. Notable movers included CapitaLand Investment, dropping 0.75 percent, City Developments decreasing by 1.15 percent, and DBS Group rising by 1.30 percent. Other key players like Emperador and Genting Singapore registered declines of 1.19 percent and 0.65 percent, respectively, while several firms remained unchanged.
Wall Street’s latest signals are cautiously optimistic, with major indexes starting and ending Monday being largely unchanged with little variance. The Dow Jones decreased by 110.58 points, or 0.25 percent, closing at 43,717.48. Conversely, the NASDAQ showed a robust increase of 247.17 points, or 1.24 percent, achieving a record close at 20,173.89, while the S&P 500 climbed 22.99 points, or 0.38 percent, to settle at 6,074.08.
U.S. market strength reflects positive sentiment towards interest rate adjustments, ahead of the Federal Reserve's upcoming monetary policy announcement. The expectation is that the Fed will continue rate cuts, with the CME Group's FedWatch Tool indicating a 99.1 percent probability of a further 25 basis-point reduction.
The NASDAQ's rise was driven by substantial growth in semiconductor stocks, as evidenced by the Philadelphia Semiconductor Index increasing by 2.1 percent. Additionally, networking stocks maintained their upward trajectory, propelling the NYSE Arca Networking Index up 2.0 percent to a new record peak. However, buying interest was somewhat tempered due to persistent inflation concerns, which might influence the Fed to ease rates more gradually next year than previously expected.
In U.S. economic updates, the Federal Reserve Bank of New York reported a significant decline in its regional manufacturing activity measure for December. Meanwhile, crude oil prices dipped on Monday due to apprehensions about future demand, influenced by lackluster economic data from China and potential tariff developments. Specifically, West Texas Intermediate crude futures for January dropped $0.58, closing at $70.71 per barrel.
Domestically, Singapore is set to report November's non-oil domestic export figures on Tuesday. In October, these exports had decreased by 7.4 percent compared to the previous month and 4.6 percent year-on-year, culminating in a trade surplus of SGD4.410 billion.
The material has been provided by InstaForex Company -
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