The Singapore stock market has experienced a downturn for two consecutive trading days, with a cumulative loss exceeding 50 points or 1.4 percent. The Straits Times Index (STI) is now positioned just below the 3,590-point threshold and may continue its downward trend on Wednesday.
Globally, the outlook for Asian markets appears subdued, primarily due to rising treasury yields. European and U.S. markets showed a slight decline, indicating potential similar movements for Asian exchanges.
On Tuesday, the STI recorded a moderate dip, influenced by declines in financial, property, and industrial stocks. The index dropped by 27.17 points, or 0.75 percent, concluding the day at a low of 3,587.41, having reached a high of 3,615.16 earlier in the session.
Among actively traded stocks, CapitaLand Integrated Commercial Trust decreased by 1.43 percent, CapitaLand Investment fell 0.67 percent, and City Developments went down by 0.94 percent. Conversely, Comfort DelGro saw a rise of 0.68 percent. Notable movements included DBS Group, which lost 0.46 percent; DFI Retail, which gained 1.34 percent; and Mapletree Logistics Trust, which dropped 0.70 percent. Meanwhile, certain stocks like Yangzijiang Shipbuilding and SingTel experienced slight declines, while others such as Hongkong Land and Seatrium Limited remained unchanged.
On Wall Street, there was little clear direction as major indices opened slightly lower on Tuesday. However, the NASDAQ managed to inch above this initial position by the end of the trading session. The Dow Jones Industrial Average saw a marginal decline of 6.71 points, or 0.02 percent, closing at 42,924.89. The NASDAQ rose by 33.12 points, or 0.18 percent, to conclude at 18,573.13, while the S&P 500 slipped by 2.78 points, or 0.05 percent, to finish at 5,851.20.
The initial weakness in U.S. markets was mainly driven by renewed concerns over interest rate prospects following a recent uptick in U.S. treasury yields. Despite the Federal Reserve reducing interest rates by 50 basis points last month, the CME Group's FedWatch Tool currently indicates an 89.6 percent likelihood of a 25-basis point rate cut in the upcoming month. Markets recuperated slightly despite a rise in the ten-year note yield to its highest closing level in nearly three months, buoyed by optimism regarding the economic forecast.
In commodity markets, oil prices surged sharply on Tuesday due to expectations that China's latest stimulus measures could boost demand. However, gains were tempered by the potential for a ceasefire agreement in the Middle East. November futures for West Texas Intermediate Crude rose by $1.53, or 2.1 percent, settling at $72.09 per barrel.
Domestically, Singapore is set to release its consumer price index (CPI) for September later today. Overall inflation is anticipated to increase by 0.5 percent month-on-month and 1.9 percent year-on-year, down from 0.7 percent month-on-month and 2.2 percent year-on-year reported in August. Meanwhile, the core CPI is expected to remain steady at an annual rate of 2.7 percent.
