The Singapore stock market has experienced a series of fluctuating performances over the last five trading days, following a two-day downward trend where it lost over 15 points or 0.4 percent. The Straits Times Index now resides just over the 3,150-point plateau, with the prospect of opening under pressure on Wednesday.
The global projection for Asian markets remains unclear, particularly in the lead up to the FOMC's rate decision and statement this later today. Although European markets experienced growth and U.S. exchanges were mixed, it is expected that Asian markets will fall in line with the latter.
On Tuesday, the STI concluded with a humble increase. This was primarily due to the industrial sector’s gains coupled with a mixed performance from the finance and property sectors. The resulting increase for the day was 9.73 points or 0.31 percent, concluding at 3,150.04.
Actives of the day ranged from Ascendas REIT with a gain of 0.70 percent to Seatrium Limited with a loss of 2.78 percent. Other noteworthy performances include CapitaLand Integrated Commercial Trust with a gain of 0.51 percent, City Developments with a loss of 0.32 percent, and Singapore Technologies Engineering with a decrease of 1.06 percent.
Guidance from Wall Street was sparse following the major averages' lower start on Tuesday. However, despite it staying under water all session, the Dow managed to finish in the green. Conversely, the NASDAQ and S&P displayed more volatility, with the S&P predominantly staying in the negative zone.
Tech stocks on NASDAQ endured a pullback as traders capitalized on recent sector strength before the release of quarterly results from major corporations such as Alphabet, Microsoft, Apple, Amazon, and Meta Platforms.
Uncertainty surrounding the Federal Reserve's impending monetary policy announcement likely influenced traders to cash in on their profits. Though interest rates are expected to remain unchanged, the accompanying statement could significantly affect rate outlooks.
In other economic news, unexpected job opening increases in December were reported by the Labor Department, and the Conference Board reported continued improvements in U.S. consumer confidence throughout January.
Fluctuation was also seen in crude oil prices, which offset previously sharp declines after global growth forecasts for 2024 were increased by the International Monetary Fund. As a result, West Texas Intermediate for March delivery rose by $1.04 or 1.4 percent, closing at $77.82 a barrel.
Looking ahead locally, Singapore will release Q4 unemployment data later today. The unemployment rate for the preceding three months was reported as 2.0 percent.
