Singapore Bourse May Extend Monday's Losses

On Monday, the Singapore stock market ended its two-day upward trajectory, during which it gained nearly 60 points or approximately 1.6 percent. The Straits Times Index (STI) now rests just above the 3,825-point level, facing another potentially subdued opening on Tuesday.

The global outlook for Asian markets appears unfavorable due to prevailing concerns surrounding tariffs and their implications for interest rates. Both European and U.S. markets experienced declines, suggesting a similar impact on Asian exchanges.

On Monday, the STI closed modestly lower, with declines observed across financial shares, property stocks, trusts, and industrial sectors. Specifically, the index fell by 29.35 points or 0.76 percent, settling at 3,826.47 after fluctuating between 3,797.83 and 3,850.85.

Among actively traded stocks, CapitaLand Integrated Commercial Trust decreased by 1.03 percent, while CapitaLand Investment slipped by 1.63 percent. City Developments edged down by 0.20 percent, and ComfortDelGro lost 0.71 percent. DBS Group fell by 0.67 percent, and Emperador saw a notable decline of 4.76 percent. Both Genting Singapore and Yangzijiang Shipbuilding dipped by 0.66 percent. Hongkong Land was down by 0.23 percent, and Keppel DC REIT dropped by 0.91 percent. Keppel Ltd's shares fell by 0.59 percent, while Mapletree Pan Asia Commercial Trust tumbled 2.48 percent. Mapletree Logistics Trust decreased by 0.82 percent, and Oversea-Chinese Banking Corporation fell by 0.80 percent. SATS retreated by 1.18 percent, with Seatrium Limited plummeting 3.14 percent, and SembCorp Industries declining by 1.43 percent. Conversely, Singapore Technologies Engineering saw a minor uptick of 0.41 percent, and Thai Beverage increased by 0.93 percent. Wilmar International gained 1.28 percent, while SingTel dropped significantly by 3.30 percent, and Yangzijiang Financial slipped by 1.05 percent. Mapletree Industrial Trust remained unchanged.

Wall Street's lead was tepid, with major indices starting the day in negative territory. Although there was some recovery from the session's lows, the day ended with losses. The Dow Jones Industrial Average decreased by 122.75 points or 0.28 percent, closing at 44,421.91. The NASDAQ fell by 235.49 points or 1.20 percent, ending at 19,391.96, and the S&P 500 dropped by 45.96 points or 0.76 percent to close at 5,994.57.

The sharp decline in stock values during early trading was driven by fears of a global trade war, following President Donald Trump's imposition of a 25 percent tariff on imports from Canada and Mexico and a 10 percent tariff on Chinese imports. Further threats of potential tariffs against the United Kingdom and the European Union marked a notable escalation in trade tensions.

In response, Canada and Mexico announced retaliatory tariffs on American goods, and China vowed countermeasures. The European Union also cautioned of strong retaliation if targeted. Investors are concerned that a trade war could impact major companies' earnings and hinder global economic growth. The situation could reignite inflation concerns, potentially prompting the Federal Reserve to maintain interest rates at current levels for an extended period.

Despite the geopolitical tensions, oil futures saw gains on Monday. West Texas Intermediate Crude oil futures for March concluded at $73.16 a barrel, increasing by $0.63 or about 0.87 percent. The upward movement was attributed to the potential disruption of North America's closely integrated oil market due to tariffs imposed on imports from Canada by the U.S. administration.

The material has been provided by InstaForex Company - www.instaforex.com
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