Singapore Bourse Likely To Remain Rangebound On Wednesday

(RTTNews) - The Singapore stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had risen 7 points or 0.2 percent. The Straits Times Index now sits just above the 4,485-point plateau and it figures to remain in that neighborhood again on Wednesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The STI finished modestly lower on Tuesday following mixed performances from the financial shares, property stocks and industrial issues.

For the day, the index shed 11.00 points or 0.24 percent to finish at 4,485.63 after trading between 4,476.23 and 4,509.14.

Among the actives, CapitaLand Ascendas REIT stumbled 1.06 percent, while CapitaLand Integrated Commercial Trust added 0.42 percent, City Developments rose 0.14 percent, DBS Group and Oversea-Chinese Banking Corporation both collected 0.22 percent, DFI Retail Group slumped 0.87 percent, Genting Singapore jumped1.37 percent, Hongkong Land plummeted 3.34 percent, Mapletree Pan Asia Commercial Trust improved 0.69 percent, Mapletree Logistics Trust advanced 0.78 percent, SATS and Yangzijiang Shipbuilding both rallied 0.90 percent, Seatrium Limited sank 0.48 percent, SembCorp Industries dropped 0.81 percent, Singapore Technologies Engineering plunged 2.35 percent, SingTel shed 0.42 percent, United Overseas Bank dipped 0.09 percent, UOL Group tanked 1.17 percent, Wilmar International lost 0.31 percent and Keppel DC REIT, Keppel Ltd, Yangzijiang Financial, Thai Beverage, CapitaLand Investment, Mapletree Industrial Trust and Comfort DelGro were unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Tuesday but then trended to the upside throughout the session, ending near daily highs.

The Dow surged 664.18 points or 1.43 percent to finish at 47,112.45, while the NASDAQ added 153.59 points or 0.67 percent to end at 23,025.59 and the S&P 500 climbed 60.76 points or 0.91 percent to close at 6,765.88.

The strength that emerged on Wall Street reflected renewed optimism about the outlook for interest rates following recent dovish comments from Federal Reserve officials as well as the latest U.S. economic data.

The Commerce Department said retail sales in the U.S. increased less than expected in September, while the Conference Board also released a report showing a substantial deterioration by U.S. consumer confidence in November.

Payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

CME Group's FedWatch Tool indicates the chances the Fed will cut interest rates by another quarter point next month have surged to 82.7 percent from 50.1 percent a week ago.

Crude oil prices slumped on Tuesday on reports that a revised Russia-Ukraine peace plan has been accepted by Ukraine. West Texas Intermediate crude for January delivery was down $0.96 or 1.61 percent at $57.89 per barrel.

Closer to home, Singapore will provide October figures for industrial production later today; in September, production was up 26.3 percent on month and 16.1 percent on year.