In recent days, the Singapore stock market has seen a consistent downward trajectory with an overall decrease of approximately 35 points, or 1.1 percent. The Straits Times Index is currently sitting just below the 3,110-point mark, and a soft opening is anticipated for Wednesday.
The Asian markets, guided by the global forecast, are poised for more consolidation due to concerns relating to the future of interest rates. While European markets displayed a mixed and stable performance, the US stock markets experienced significant downturns, pointing towards a potentially negative opening for Asian markets.
On Tuesday, financial shares, property stocks, and industrial issues contributed to the modest decline of the STI. The index ended the day 15.11 points (or 0.48 percent) lower at 3,107.10.
Notable performances came from Ascendas REIT, which fell 0.37 percent, and Capital Land Integrated Commercial Trust, which decreased 0.52 percent. DBS Group, Emperador, Hongkong Land, and Keppel Ltd, amongst others, also saw losses. On the other hand, UOL Group recorded a gain of 0.72 percent.
Wall Street presented a broadly negative impression as major averages remained firmly in the red throughout Tuesday's session and closed near their daily lows. The Dow Jones Industrial Average fell 404.64 points (or 1.04 percent), while the NASDAQ Composite and the S&P 500 also suffered losses, closing down 267.92 points (or 1.65 percent), and 52.30 points (or 1.02 percent) respectively.
The downturn on Wall Street is largely attributed to the continued withdrawal of traders from recent market highs, specifically from the S&P 500 and the NASDAQ. Uncertainty around the future of interest rates further exacerbated the downturn.
Amid this backdrop, Federal Reserve Chair Jerome Powell is scheduled to testify to the House Financial Services Committee and the Senate Banking Committee in the coming days.
In other economic news, U.S. service sector growth reportedly slowed unanticipatedly in February, according to the Institute for Supply Management. Additionally, The Commerce Department reported a decrease in new orders for U.S. manufactured goods in the month of January.
Crude oil futures also fell for the second straight session due to concerns about demand, with West Texas Intermediate Crude oil futures for April closing down by $0.59 at $78.15 per barrel.
