The Singapore stock market bounced back on Tuesday, breaking a two-day losing streak where it had slipped around 20 points or 0.6 percent. The Straits Times Index (STI) is now slightly above the 3,140-point mark, though it's speculated to decline once again on Wednesday.
Worldwide market forecasts predict a downward trend for Asian markets, driven by rising anxiety over interest rate prospects. Both the European and U.S. markets concluded decidedly lower, implying that Asian markets may also begin with a disadvantage.
The STI recorded a marginal increase on Tuesday following gains in the property sector and mixed results from financial and industrial sectors. The Index ascended 3.57 points or 0.11 percent to wrap up at 3,141.87, after fluctuating between 3,118.67 and 3,151.70.
Regarding active stocks, Ascendas REIT fell by 0.72 percent, whereas CapitaLand Integrated Commercial Trust gained 0.51 percent. City Developments rose by 0.67 percent, Comfort DelGro decreased by 0.71 percent, and DBS Group slightly fell by 0.15 percent. Furthermore, Hongkong Land, Keppel DC REIT, and SembCorp Industries saw increases of 2.21 percent, 1.75 percent, and 1.09 percent respectively. However, Mapletree Industrial Trust and Yangzijiang Shipbuilding were amongst those who saw a decline.
Wall Street's primary averages opened significantly lower and remained so throughout the session, implying market consolidation. The Dow dropped 524.63 points or 1.35 percent to conclude at 38,272.75, while the NASDAQ and the S&P 500 also suffered declines.
Consumer prices in the U.S. in January rose slightly more than anticipated, according to a highly awaited report by the Labor Department. Given that Federal Reserve officials have stated they need greater assurance of inflation slowing before interest rates can be decreased, this data has further diluted hopes of an imminent rate cut. Subsequently, Treasury yields rose with the yield on the ten-year note peaking at its highest in two months.
Finally, concerns about supply due to ongoing Middle East tensions pushed oil prices higher on Tuesday. West Texas Intermediate Crude oil futures for March surged by $0.95 or 1.25 percent to $77.87 a barrel, marking a seventh consecutive session of increase.
