Rally May Stall For Singapore Stock Market

(RTTNews) - Ahead of Monday's holiday for National Day, the Singapore stock market had moved higher in back-to-back sessions, gathering almost 120 points or 2 percent along the way. The Straits Times Index now sits just beneath the 5,700-point plateau although it may run out of steam on Tuesday. The global forecast for the Asian markets is weak on continuing concerns over the conflict in the Middle East and the resulting spike in crude oil prices. The European markets were mixed and flat and the U.S. bourses were slightly soft and the Asian markets figure to split the difference. The STI finished sharply higher on Friday following gains from the financial shares and properties, while the industrials were mixed. For the day, the index climbed 59.44 points or 1.05 percent to finish at 5,698.43 after trading between 5,644.56 and 5,700.07.

The lead from Wall Street is soft as the major averages hugged the line for much of the day before fading midday and ending in the red.

The choppy trading on Wall Street came as traders look ahead to key U.S. inflation data in the coming days.

The Labor Department is scheduled to release reports on consumer and producer inflation on Wednesday and Thursday, respectively. On the heels of last Friday's weak jobs report, the data could impact the outlook for interest rates.

Traders are also keeping an eye on developments in the Middle East, where Iran and Oman are reportedly close on a deal regarding the Strait or Hormuz but Tehran has indicated it is resisting talks with the U.S.

Crude oil prices skyrocketed as a result on Monday as expectations of an early reopening of the Strait of Hormuz began to fade, increasing concerns of military re-escalation. West Texas Intermediate crude for September delivery was up $4.07 or 5.21 percent at $82.25 per barrel.