The Straits Times Index (STI), a significant index of the Singapore stock market, broke its two-day gain streak on Thursday. The market had previously accumulated an increase of over a dozen points, equivalent to 0.3 percent. Currently, the STI is only slightly above the 3,140-point threshold, however, a resurgence in support is anticipated on Friday.
Globally, the forecast for Asian markets is positive. Many believe that the significant selling earlier this week was excessive. Even though European markets fell, American markets saw growth, and it's expected that Asian markets will mirror this upward trend.
On Thursday, the STI closed with only a modest decrease, with most of the losses coming from the financial, property, and industrial sectors. Overall, the index lost 9.95 points, or 0.32 percent, closing at 3,143.06 after fluctuating between 3,123.14 and 3,148.81.
Several significant stocks impacted the day’s performance. Ascendas REIT, CapitaLand Integrated Commercial Trust, and CapitaLand Investment saw losses. Additionally, City Developments, DBS Group, Keppel DC REIT, and Keppel LTD also recorded drops. However, Genting Singapore, SATS, Singapore Technologies Engineering, and SingTel were among those experiencing gains.
The overall mood of Wall Street was optimistic, as prime averages began slightly higher, escalating throughout the day and closing near peak levels. The Dow surged by 369.54 points, a 0.97 percent increase, while the NASDAQ leaped by 197.63 points, a 1.30 percent rise. The S&P 500 also saw growth, raising by 60.54 points or 1.25 percent.
Traders took advantage of lesser values after Wednesday's selloff in Wall Street. Despite indications from the Federal Reserve that a March interest rate cut is unlikely, economists hold that it's more of a "when, not if" situation regarding the central bank's rate reductions.
The Treasury yield's continuous drop may have also spurred the buying interest as the yield on the primary 10-year note fell to its lowest level in over a month. Furthermore, U.S labor market data showed a slight increase in initial jobless claims last week. Additionally, U.S manufacturing activity has risen in January despite a continuous indication of a contraction by the Institute for Supply Management.
Oil futures took a hit as traders tracked potential cease-fire negotiations amid the Israel-Hamas conflict. Nevertheless, a presumable resurgence in energy demand limited the overall decline. West Texas Intermediate Crude oil futures dipped by $2.03, or 2.7 percent, ending at $73.82 per barrel.
