FX.co ★ Singapore Stock Market May Reverse Tuesday's Losses

On Tuesday, the Singapore stock market concluded its five-day winning streak, during which it had surged by more than 90 points or 2.8 percent. The Straits Times Index (STI) now sits just below the 3,490-point mark, although it is anticipated to rise again on Wednesday.

The global outlook for Asian markets is positive, fueled by strong earnings reports and optimistic sentiment regarding interest rates. While European markets experienced a decline, U.S. stock indices showed gains, and it is expected that Asian markets will follow the latter trend.

The STI closed slightly lower on Tuesday, affected by losses in financial shares and mixed performances in property and industrial sectors. Specifically, the index decreased by 11.98 points or 0.34 percent, ending at 3,487.91, after fluctuating between 3,469.56 and 3,497.89.

Key market movements on Tuesday included CapitaLand Investment falling by 0.72 percent, City Developments declining by 0.73 percent, DBS Group dropping by 1.42 percent, and Genting Singapore slipping by 0.57 percent. On the other hand, Hongkong Land rose by 0.30 percent, and Mapletree Industrial Trust increased by 0.44 percent. Seatrium Limited saw a 1.36 percent rally, while SingTel jumped by 1.33 percent. Yangzijiang Shipbuilding surged by 5.65 percent. Several stocks, including Mapletree Logistics Trust, Yangzijiang Financial, CapitaLand Integrated Commercial Trust, Singapore Technologies Engineering, Thai Beverage, Comfort DelGro, and Emperador, remained unchanged.

In the U.S. market, the Dow Jones Industrial Average surged by 742.76 points or 1.85 percent to close at an all-time high of 40,945.48. The NASDAQ added 36.77 points or 0.20 percent, ending at 18,509.34, while the S&P 500 rose by 35.98 points or 0.64 percent, closing at a record-breaking 5,667.20.

The rally on Wall Street was driven by positive earnings reports from companies such as UnitedHealth, Bank of America, and Morgan Stanley. Investors also responded positively to recent U.S. economic data, including a Commerce Department report showing that U.S. retail sales remained unchanged in June. Additionally, the Labor Department reported that U.S. import prices were flat, while export prices declined by 0.5 percent.

Gold stocks showed notable strength due to a significant increase in the price of the precious metal, with the NYSE Arca Gold Bugs Index rising by 3.4 percent, reaching its highest closing level in more than two years.

Oil prices declined on Tuesday, marking the third consecutive session of losses amid concerns about future demand and a slightly stronger dollar. West Texas Intermediate (WTI) crude oil futures for August dropped by $1.15 or 1.4 percent, settling at $80.76 per barrel.

Looking ahead, Singapore is scheduled to release June data for non-oil domestic exports (NODX) later today. In May, NODX had decreased by 0.1 percent both on a monthly and yearly basis, with the trade surplus amounting to SGD 4.563 billion.