The Singapore stock market has experienced a downward trend in recent sessions, with the Straits Times Index falling by 3.4 percent. This decline is expected to continue due to concerns about interest rates. In the global market, European markets were mixed, while U.S. bourses were down. This has resulted in a cautious outlook for Asian markets.
Singapore Stock Market Continues Downward Trend
The Singapore stock market has recorded four consecutive sessions of decline, resulting in a significant drop of nearly 110 points or 3.4 percent. This has pushed the Straits Times Index to just above the 3,210-point level. Unfortunately, the market is bracing itself for further damage on Thursday, with investors remaining cautious.
Global Market Forecast Weak as Interest Rate Concerns Grow
Renewed concerns over the outlook for interest rates have contributed to the weak forecast for Asian markets. In Europe, markets were mixed, and U.S. bourses experienced a decline. As a result, the Asian markets are expected to split the difference. The uncertainty surrounding interest rates has created a sense of unease among investors, leading to a cautious approach across global markets.
STI Closes Lower, Banking and Property Stocks Mixed
On Wednesday, the Straits Times Index (STI) closed lower, owing to mixed performances from financial, property, and industrial sectors. The index saw a decline of 19.16 points or 0.59 percent, settling at 3,213.58. Notable movers included Ascendas REIT, CapitaLand Investment, City Developments, and Comfort DelGro, among others. The mixed performance across various sectors contributed to the overall decline in the STI.
Wall Street Ends in the Red as Fed Minutes Suggest Tightening
Wall Street closed in the red after the release of the minutes from the Federal Reserve’s July meeting. Most central bank officials perceive significant upside risks to inflation, which could require additional tightening of monetary policy. This revelation led to a drop in the Dow, NASDAQ, and S&P 500. The impact of the Fed’s minutes reverberated across global markets, including Singapore.
Singapore Non-Oil Domestic Exports Expected to Rise in July
Later today, Singapore is set to release non-oil domestic export figures for July. Forecasts indicate a 2.6 percent increase month-on-month, with a 16.5 percent decline year-on-year. This follows a 5.4 percent monthly gain and a 15.5 percent decline in June. The performance of non-oil domestic exports will provide insights into the country’s trade prospects and economic recovery amid challenges posed by the ongoing pandemic.
The Singapore stock market continues to struggle, with investors remaining cautious amid concerns over interest rates and the global economic outlook. The weak forecast for Asian markets, along with mixed performances from various sectors, has contributed to the decline in the Straits Times Index. Investors are closely monitoring the release of Singapore’s non-oil domestic export figures for July, seeking indications of the country’s trade prospects and economic recovery.
Analyst comment
Negative news: The Singapore stock market is experiencing a downward trend due to concerns about interest rates. The market is bracing for further damage, and investors remain cautious. The weak global market forecast, driven by interest rate concerns, has created unease among investors. Mixed performances from various sectors have contributed to the decline in the Straits Times Index. Investors are closely monitoring Singapore’s non-oil domestic export figures for July to assess trade prospects and economic recovery.
