The Singapore stock market snapped its two-day losing streak on Monday, during which it slid nearly 35 points or 1%. Currently, the Straits Times Index (STI) rests slightly above the 3,570 mark, though it is anticipated to decline once again on Tuesday. The global outlook for Asian markets appears largely subdued as investors brace for the U.S. presidential election and the Federal Reserve's rate decision this week. Both European and U.S. markets closed lower, setting the stage for a similar trend across Asian exchanges.
On Monday, the STI experienced a modest rise, propelled by gains in property stocks, alongside mixed results from financial and industrial shares. The index climbed by 16.61 points or 0.47% to close at 3,572.04, fluctuating between a low of 3,566.42 and a high of 3,582.04 throughout the day's trading. Notable movements included CapitaLand Integrated Commercial Trust advancing 0.49%, CapitaLand Investment increasing by 1.06%, City Developments gaining 0.77%, and DBS Group rising by 0.80%. However, Frasers Centrepoint Trust tumbled 2.67%, Hongkong Land surged 7.14%, and Keppel Ltd declined by 0.31%, among others.
Wall Street delivered a muted performance, with key indices opening lower on Monday, hovering near the baseline all day, and ultimately closing in negative territory. The Dow Jones Industrial Average dropped 257.59 points, or 0.61%, settling at 41,794.60. The NASDAQ fell 59.93 points, or 0.33%, to 18,179.98, while the S&P 500 decreased by 16.11 points, or 0.28%, closing at 5,712.69.
The hesitant trading environment on Wall Street was influenced by traders’ caution ahead of the U.S. elections on Tuesday. Vice President Kamala Harris is contending against former President Donald Trump in what is projected to be an intensely contested race. Given the tight polls, the outcome may not be confirmed by Election Day.
Additionally, investors are awaiting the Federal Reserve's forthcoming monetary policy announcement on Thursday. Widely anticipated to involve a 25-basis-point interest rate cut, market participants are focused on the accompanying statement for any indications of future monetary policy adjustments.
Oil prices experienced a notable surge on Monday, bolstered by OPEC's decision to postpone plans to increase production amidst escalating concerns over Middle Eastern tensions. West Texas Intermediate crude oil futures for December delivery rose by $1.98, or approximately 2.85%, closing at $71.47 a barrel, thus marking the fourth consecutive session of gains.
Closer to home, Singapore is set to release its retail sales data for September later today. In August, retail sales increased by 0.7% month-over-month and 0.6% year-over-year.
