Over two consecutive trading sessions, the Singapore stock market has seen a modest upward trend, accumulating more than 25 points, which represents a gain of approximately 0.7%. As of now, the Straits Times Index is sitting just above the 3,290-point mark, although there's speculation that this trend could potentially be disrupted this incoming Monday.
Internationally, the expectation for Asian markets is a mild rise, despite conflicting factors influencing interest rate forecasts. European markets experienced an upward trajectory, whereas the markets in the United States showed no significant movement in either direction. Given these mixed signals, it's likely that Asian markets may follow suit.
On Friday, the Straits Times Index made a small yet reasonable gain. This was largely due to the performance of financial shares, real estate stocks and industrial sectors. The index itself increased by 24.75 points (or 0.76%), ending at 3,290.70 after fluctuating between 3,276.79 and 3,297.37 throughout the day.
Notable companies that saw movement include CapitaLand Investment, City Developments, Comfort DelGro, DBS Group, Emperador, and Genting Singapore. Additionally, stocks like Hongkong Land, Keppel Ltd, and Mapletree Logistics Trust performed well, while others, such as Keppel DC REIT and Seatrium Limited, experienced losses.
On Wall Street, the mood was somewhat apprehensive. Major averages opened higher on Friday, dipped, and ultimately ended the day with a slight, albeit mixed, change. The Dow increased by 125.08 points (0.3%), finishing at 39,512.84, while the NASDAQ fell slightly by 5.40 points (0.1%), closing at 16,340.87. The S&P 500 saw a slight upswing, gaining 8.60 points (0.2%) and closing at 5,222.68.
Over the course of the week, the NASDAQ rose by 1.14%, whereas the S&P 500 and the Dow saw gains of 1.85% and 2.16%, respectively. The renewed optimism surrounding interest rates played a significant role in Wall Street's initial strength, primarily due to some indicators pointing towards a weakening U.S. labour market. This has given investors hope that the Federal Reserve might implement interest rate cuts in the near future.
However, this optimism was somewhat nullified when the University of Michigan reported a significant drop in U.S. consumer sentiment in May, with signs of inflation expectations for the coming year on the rise.
In other news, crude oil prices experienced a downfall on Friday, prompted by concerns that the Federal Reserve may prolong higher interest rates, coupled with the uncertainty surrounding the demand for oil amid signs of an economic slowdown. Consequently, West Texas Intermediate Crude oil futures for June dropped by $1.00 to close at $78.26 a barrel.
