Rebound Expected For Singapore Stock Market

(RTTNews) - The Singapore stock market headed south again on Wednesday, one day after ending the two-day slide in which it had fallen almost 30 points or 0.8 percent. The Straits Times Index now rests just above the 3,790-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat on improved optimism about the outlook for interest rates. The European markets were up and the U.S. bourses were mostly higher and the Asian markets figure to follow suit.

The STI finished modestly lower on Wednesday following mixed performances from the financials, trusts, properties and industrials.

For the day, the index sank 20.73 points or 0.54 percent to finish at 3,792.82 after trading between 3,790.23 and 3,815.93.

Among the actives, CapitaLand Integrated Commercial Trust added 0.52 percent, while CapitaLand Investment plunged 1.85 percent, DBS Group skidded 0.73 percent, Genting Singapore tanked 1.29 percent, Hongkong Land plummeted 3.59 percent, Keppel DC REIT advanced 0.92 percent, Keppel Ltd slumped 0.87 percent, Mapletree Pan Asia Commercial Trust declined 0.81 percent, Mapletree Industrial Trust shed 0.45 percent, Oversea-Chinese Banking Corporation dropped 0.60 percent, SATS fell 0.27 percent, Seatrium Limited sank 0.49 percent, SembCorp Industries retreated 1.06 percent, Singapore Technologies Engineering tumbled 1.10 percent, Thai Beverage jumped 1.77 percent, Wilmar International lost 0.32 percent, Yangzijiang Financial climbed 1.25 percent, Yangzijiang Shipbuilding rallied 1.48 percent and City Developments, Comfort DelGro, Frasers Logistics & Commercial Trust, Emperador, SingTel and Mapletree Logistics Trust were unchanged.

The lead from Wall Street is mixed to higher as the major averages opened in the green on Wednesday, although the Dow was unable to hold those gains.

The Dow dropped 99.27 points or 0.22 percent to finish at 44,148.56, while the NASDAQ surged 347.65 points or 1.77 percent to close at a record 20,034.89 and the S&P 500 rallied 49.28 points or 0.82 percent to end at 6,084.19.

The strength in the broader markets followed the release of closely watched inflation data that came in line with estimates.

With the data matching expectations, the report has increased confidence that the Federal Reserve will lower interest rates by another quarter-point next week.

CME Group's FedWatch Tool is currently indicating a 98.6 percent chance the Fed will cut rates by 25 basis points at its December meeting.

Oil futures settled higher Wednesday on possible sanctions on Russia by the European Union, expectations of increased demand from China and data showing a jump in gasoline stockpiles. West Texas Intermediate crude oil futures for January closed up $1.70 or 2.5 percent at $70.29 a barrel.