The Singapore stock market closed its two-day winning streak on Wednesday, where it had gained nearly 15 points or 0.5%. The Straits Times Index (STI) currently hovers just below the 3,325-point mark, with potential for further declines anticipated on Thursday.
Global market trends suggest a negative outlook for Asian markets, driven by concerns over treasury yields and interest rate expectations. Both European and U.S. markets experienced downturns, setting a similar expectation for Asian markets.
On Wednesday, the STI saw a minor decline, influenced by mixed performances across financial shares and industrial sectors, with property stocks also showing weakness. The index fell by 6.89 points, or 0.21%, ending the day at 3,323.20 after trading between 3,322.92 and 3,333.86.
Significant movements included CapitaLand Ascendas REIT and SATS both dropping 0.38%, CapitaLand Integrated Commercial Trust decreasing by 1.02%, and City Developments falling 0.34%. Conversely, Comfort DelGro gained 0.72%, and Yangzijiang Shipbuilding surged by 10.55%. Other notable performances included Seatrium Limited skyrocketing by 1,900%, while Keppel Ltd and Mapletree Logistics Trust both declined 0.74%. Several companies, including SembCorp Industries, SingTel, and Thai Beverage, saw no change.
In the U.S., major indices opened lower on Wednesday, maintaining a downward trend throughout the day. The Dow Jones Industrial Average plummeted 411.32 points, or 1.06%, to close at 38,441.54. The NASDAQ fell 99.30 points, or 0.58%, closing at 16,920.58, while the S&P 500 sank 39.09 points, or 0.74%, to end at 5,266.95.
This downturn was attributed to a continued rise in treasury yields, with the benchmark ten-year note reaching its highest level in nearly a month. The rising yields have heightened concerns about future interest rates, particularly ahead of key inflation data to be released later in the week.
Crude oil prices also fell on Wednesday amid worries about interest rate impacts and their potential negative effect on energy demand. West Texas Intermediate Crude oil futures for July decreased by $0.60, settling at $79.23 per barrel.
