The Singapore stock market experienced a resurgence on Monday, bouncing back after a halt on its three-day-streak that had witnessed an over 15 point, or 0.5 percent, surge. The Straits Times Index (STI) now stands just above the critical 3,300-point level and seems poised for further gains on Tuesday. This is fueled by a globally upbeat forecast marked by renewed optimism regarding interest rate outlooks. This was reflected in the significant upturn in European and U.S. markets, a trend expected to be replicated in Asian markets.
On Monday, the STI reported a modest hike, thanks to an uptick in financial, real estate, and industrial sectors' stocks. For the day, the index climbed by 10.26 points or 0.31 percent, ending at 3,303.19 after fluxing between 3,292.03 and 3,307.92. Active players included CapitaLand Investment, which boosted by 1.92 percent, and City Developments, which grew by 0.67 percent. However, Comfort DelGro slipped by 0.17 percent. Other key stakeholders included DBS Group, Genting Singapore, Hongkong Land, Keppel Ltd, and various Mapletree Trusts, among others, all showing varied performance.
Wall Street's influence was largely optimistic as major averages started high on Monday and sustained this throughout the trading day. The Dow Jones Industrial Average rose 176.59 points, or 0.46 percent, to settle at 38,852.27, while the NASDAQ Composite Index increased 192.92 points, or 1.19 percent, to close at 16,349.25. The S&P 500 ended at 5,180.74, an improvement of 52.95 points, or 1.03 percent.
This sustained upswing was partly due to a refreshed positivity concerning interest rates. Comments from the Federal Reserve Chair, Jerome Powell, which were considered relatively dovish, along with weaker-than-anticipated job growth in April, largely eased concerns about potential interest rate hikes. Investors are now leaning more towards the likelihood of a rate cut in the coming months, with an 83.5 percent chance of a drop by September, per the CME Group's FedWatch Tool.
Crude oil futures moderately rose on Monday as Saudi Arabia increased its selling price for European and Asian markets. West Texas Intermediate Crude oil futures for June ended higher by $0.37 or 0.47 percent at $78.48 a barrel.
