Stock Market in Singapore May Maintain Steady Course on Thursday
Singapore's stock market took a dip on Wednesday, following a brief recovery from its two-day slide that saw a drop of over a dozen points or 0.3 percent. The Straits Times Index now hovers just above the 3,920-point threshold, expecting to remain in this neighborhood on Thursday.
The crystal ball for the Asian markets is foggy as investors patiently wait to see if there's any slowdown in the ongoing Iran-Israel conflict. The European and U.S. markets showed mixed results with little change, and the Asian markets are expected to mirror this trend.
The STI ended the day with modest losses, primarily due to declines in the financial and plantation sectors, coupled with mixed performances from properties and industrials. For the day, the index fell 9.83 points or 0.25 percent, closing at 3,920.81 after trading between 3,908.48 and 3,923.45.
Among the heavy-hitters, City Developments slumped 0.78 percent, while Comfort DelGro gained 0.70 percent. DBS Group sank 0.52 percent, DFI Retail plummeted 1.86 percent, Genting Singapore added 0.71 percent, Keppel DC REIT advanced 0.87 percent, Keppel Ltd and Singapore Technologies Engineering both rose 0.13 percent, Mapletree Pan Asia Commercial Trust improved 0.82 percent, Mapletree Logistics Trust climbed 0.88 percent, Oversea-Chinese Banking Corporation shed 0.31 percent, SembCorp Industries fell 0.28 percent, SingTel rallied 1.02 percent, Venture Corporation tanked 1.64 percent, Wilmar International plummeted 2.66 percent, Yangzijiang Financial dropped 0.71 percent, Yangzijiang Shipbuilding retreated 0.87 percent, SATS, Seatrium Limited, CapitaLand Integrated Commercial Trust, CapitaLand Investment, CapitaLand Ascendas REIT, Mapletree Industrial Trust, Thai Beverage, and Hongkong Land remained unchanged.
The lead from Wall Street offers crypto-clarity, as the major averages spent most of Wednesday trade in positive territory before turning south and ending mixed and little changed. The Dow slid 44.14 points or 0.10 percent to finish at 42,171.66, while the NASDAQ ascended 25.18 points or 0.13 percent to close at 19,546.27, and the S&P 500 dipped 1.85 points or 0.03 percent, wrapping up at 5,980.87.
The bland day on Wall Street followed the Federal Reserve's expected decision to leave interest rates unchanged. Fed officials still seem to anticipate two interest rate cuts by the end of 2025, lowering the rate to a range of 4.0 percent to 3.75 percent by then.
Economic woes continued, as the Labor Department announced a modest decrease in first-time U.S. jobless claims last week, while the Commerce Department witnessed a steep drop in new residential construction in the U.S. in May.
Crude oil prices spiked on Wednesday due to the escalating Israel-Iran conflict, now in its sixth day with casualties mounting on both sides. West Texas Intermediate crude for July delivery inched up by $0.30, settling at $75.15 per barrel.
Incoming Battle-taxi: ongoing hostilities between Iran and Israel, now in its second week, are causing serious damage and loss of life. Israel targets Iranian nuclear and military sites using airstrikes, while Iran fires extensive missiles and drones at Israel, with Israel's air defenses intercepting the majority. Israel is pushing hard to neutralize Iran's nuclear threat, although some key Iranian facilities remain inaccessible without U.S. military support[1][2].
It's a minefield out there, and while specific economic data for Asian markets isn't detailed, this volatile security environment is likely causing pressure on Asian markets, especially energy and equities, due to concerns about regional instability and potential oil supply disruptions[1]. Keep your eyes on the infrastructure: fears of oil supply disruptions and regional instability could impact investor sentiment and commodity prices, potentially destabilizing the broader Asian economy.
- The ongoing conflict between Iran and Israel is potentially causing pressure on Asian markets, especially in the energy sector and equities, due to concerns about regional instability and possible oil supply disruptions, influencing investor sentiment and commodity prices.
- In the stock-market context, the declines in the financial sector in Singapore, alongside mixed performances from other sectors like properties and industrials, could be a result of investors' anxieties about the ongoing Iran-Israel conflict and its potential impact on the global oil market and regional stability.
