The Singaporean stock market has faced consecutive declines, notably falling approximately 20 points or 0.6 percent over a couple of sessions. Currently, the Straits Times Index just exceeds the 3,120-point mark, suggesting a potentially greater decline looming on the horizon.
Central to the global forecast for Asian markets is the possibility of a slight consolidation, governed by imminent key data that could impact interest rates. Despite the European markets being flat and mixed, with U.S. exchanges experiencing a mild drop, the Asian markets might strike a balance.
Monday's trading saw the Straits Times Index record a modest decline, driven by losses in the industrial and property sectors while financial shares remained mixed. The index ended the day with a 0.43 percent drop, equivalent to 13.55 points, closing at 3,122.21.
Key performers included CapitaLand Investment down by 0.74 percent, City Developments falling by 1.40 percent and both DBS Group and SemiCorp Industries losing 0.39 percent. On a more positive note, Genting Singapore gained 1.10 percent. Meanwhile, Hong Kong Land, Keppel Ltd, and Seatrium Limited saw significant declines. Other stocks like SingTel, Wilmar International, and Ascendas REIT experienced mixed outcomes.
Given Wall Street's negative lead, with major averages oscillating between the red and the black, investor caution is advised. Amid this, there is keen anticipation for Federal Reserve Chair Jerome Powell's congressional testimony, potentially providing insights about interest rate outlooks. This is in tandem with the Labor Department's February employment report, which may also influence interest rates.
Oil futures also experienced a dip due to concerns about energy demand following OPEC's decision to prolong its output cuts until Q2's end. West Texas Intermediate Crude oil futures declined by $1.23 or 1.5 percent, finishing at 78.74 a barrel.
Locally, Singapore's January retail sales data will be key; in December, sales fell 1.5 percent month-on-month and 0.4 percent year-on-year.
