FX.co ★ Lower Open Anticipated For Singapore Stock Market

The Singapore stock market has seen fluctuations over the last few days, with a dip in activity following a three-day streak of growth where it rose over 15 points or 0.5 percent. Currently the Straits Times Index finds itself hovering above the 3,300-point plateau, with an expectation that it may continue its downward trend.

The international outlook for Asian markets, like the Singaporean one, is currently uncertain, reflecting the ambiguous state of interest rates. The American and European markets have shown mixed results, a pattern that Asian markets seem to be emulating.

On Tuesday, the Singapore stock market closed marginally lower as a result of losses in the industrial and properties sectors, while the financial sector remained varied. Key movers were notable Singaporean companies such as CapitaLand Integrated Commercial Trust, which lost 0.52 percent, and CapitaLand Investment, which nose-dived by 1.89 percent.

The Wall Street stock market's influence is unclear at this moment. The major stock market indices in the US opened strong, but later dissipated, ending with mixed results. The Dow Jones increased by 31.99 points or 0.08 percent, while the NASDAQ decreased marginally by 0.10 percent. The S&P 500, on the other hand, witnessed a nominal increase of 0.13 percent.

The subtle recovery on Wall St has been credited to a resurgence of optimism with regard to interest rates. Comments by the Federal Reserve Chair, Jerome Powell, suggesting a hesitancy to increase rates, coupled with a weaker-than-expected job growth in April have dampened concerns related to rate hikes. However, any burgeoning investor enthusiasm was tempered by a later statement by Minneapolis Federal Reserve President Neel Kashkari, arguing that interest rates may have to remain at their current levels for the foreseeable future.

In oil news, futures settled slightly lower on Tuesday due to concerns over the future global demand for oil. West Texas Intermediate Crude oil futures for June ended lower by $0.10 at $78.38 a barrel. This minor dip in oil futures only adds to the economic uncertainty currently witnessed in financial markets globally.