The Singapore stock market has demonstrated positive momentum over the past three sessions, gaining more than 20 points or 0.4 percent. The Straits Times Index (STI) is currently hovering just below the 4,310-point mark, and indications suggest that it will open positively again on Tuesday.
Global sentiment is favorably influencing Asian markets, driven by optimism regarding future interest rate movements. Both European and U.S. markets recorded modest gains, setting a positive tone for Asian exchanges.
On Monday, the STI concluded with a slight gain, driven by mixed performances across financial, property, and industrial sectors. The index increased by 1.44 points or 0.03 percent, settling at 4,308.52 after fluctuating between 4,296.13 and 4,319.06 throughout the day.
Within the active stocks, CapitaLand Ascendas REIT and Frasers Logistics & Commercial Trust both rose by 1.08 percent, while CapitaLand Integrated Commercial Trust saw a 1.33 percent increase. CapitaLand Investment gained 0.72 percent, and City Developments advanced by 1.05 percent. Additionally, Comfort DelGro increased by 1.36 percent.
On the flip side, DFI Retail Group saw a decline of 0.60 percent, and Hongkong Land fell by 0.94 percent. Some notables included Keppel DC REIT, which increased by 0.86 percent, and other subsidiaries under the Mapletree group, showcasing notable gains.
The performance of Wall Street has provided a cautiously optimistic backdrop, with major indexes opening mixed but all closing with minor gains. The Dow Jones Industrial Average rose by 114.09 points or 0.25 percent to end at 45,514.95. The NASDAQ gained 98.31 points or 0.45 percent, finishing at 21,798.70, while the S&P 500 added 13.65 points or 0.21 percent, concluding at 6,495.15.
The uplifting sentiment on Wall Street was fueled by optimism regarding interest rate outlooks, particularly after disappointing U.S. employment data released last Friday. The CME Group’s FedWatch Tool currently indicates a 90.2 percent chance that the Federal Reserve may reduce rates by a quarter point in the upcoming meeting.
However, overall trading activity remained tepid as investors positioned themselves ahead of the anticipated release of consumer and producer price inflation data later this week, which is expected to have an impact on future rate expectations.
In commodity markets, crude oil prices edged higher on concerns over potential sanctions on Russian oil exports. Despite the upward pressure, gains were somewhat capped due to OPEC’s recent decision to increase output. As of Monday, West Texas Intermediate crude for October delivery gained $0.53 or 0.86 percent, settling at $62.40 per barrel.
