FX.co ★ Singapore Stock Market May Open To The Upside

The Singapore stock market managed to break its two-day downward cycle on Monday, after having lost nearly 15 points or 0.5%. The Straits Times Index (STI) is currently holding just above the 3,280-point threshold and it might find further support on Tuesday.

Worldwide, the forecast for Asian markets is level, with a slight possibility of improvement before Wednesday's Federal Reserve's Open Market Committee (FOMC) policy announcement. While European markets showed a softening trend, U.S. markets performed slightly better, which could influence Asian markets to follow suit.

On Monday, the STI finished slightly up, driven by a mixed performance from financial, trust, property, and industrial sectors. The index gained 1.95 points or 0.06% to close at the daily high of 3,282.05 after touching a low of 3,264.11.

Among the active companies, CapitaLand Investment saw a 0.38% drop while City Developments increased by 0.66%. Comfort DelGro rose by 1.35%, DBS Group improved by 1.05%, however, Emperador shrunk by 2.27%. Other noteworthy movers include Hongkong Land, which decreased by 0.96%, and Yangzijiang Shipbuilding, which surged by 2.69%.

Wall Street's outcome indicates a mild upturn as leading averages opened higher on Monday and primarily remained in the positive territory, closing slightly higher.

The Dow increased by 146.43 points or 0.38% to settle at 38,386.09, while the NASDAQ moved up by 55.18 points or 0.35% to close at 15,983.08. The S&P 500 likewise added 16.21 points or 0.32% to end at 5,116.17.

The modest increase on Wall Street is a result of stocks benefiting from the positive trajectory endured last week following receptive reactions to robust tech earnings. However, overall trading activity remained somewhat muted, as investors anticipate the Federal Reserve's monetary policy announcement on Wednesday.

In the oil markets, futures settled lower on Monday due to concerns about the growth and outlook for oil demand, and an increase in the likelihood of the Federal Reserve postponing interest rate cuts. West Texas Intermediate Crude oil futures for June concluded by dropping $1.22 or 1.45%, closing at $82.63 a barrel.