Singapore Stock Market May Open In The Red

(RTTNews) - Ahead of Wednesday's Labor Day holiday, the Singapore stock market had moved higher in back-to-back sessions, collecting more than a dozen points or 0.4 percent along the way. The Straits Times Index now rests just above the 3,290-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is soft following the Federal Reserve's rate decision and statement. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The STI finished modestly higher on Tuesday following gains from the property stocks and industrial companies, while the financials were mixed.

For the day, the index added 10.64 points or 0.32 percent to finish at 3,292.69 after trading between 3,269.20 and 3,298.03.

Among the actives, CapitaLand Investment rallied 1.14 percent, while City Developments added 0.65 percent, Comfort DelGro sank 0.67 percent, DBS Group gathered 0.35 percent, Emperador slumped 1.16 percent, Genting Singapore skidded 1.08 percent, Hongkong Land soared 3.22 percent, Keppel Ltd gained 0.58 percent, Mapletree Pan Asia Commercial Trust dropped 0.79 percent, Mapletree Industrial Trust climbed 0.89 percent, Mapletree Logistics Trust advanced 0.75 percent, Oversea-Chinese Banking Corporation collected 0.28 percent, SATS lost 0.40 percent, Seatrium Limited skyrocketed 5.38 percent, SembCorp Industries perked 0.19 percent, Singapore Technologies Engineering rose 0.50 percent, SingTel jumped 1.28 percent, Thai Beverage surged 4.21 percent, Wilmar International plummeted 3.29 percent, Yangzijiang Financial tumbled 1.56 percent, Yangzijiang Shipbuilding spiked 2.33 percent and CapitaLand Integrated Commercial Trust and Keppel DC REIT were unchanged.

The lead from Wall Street offers little guidance as the major averages were flat on Wednesday until a spike following the Federal Reserve's monetary policy announcement. It faded quickly, however, and the markets finished mixed and little changed.

The Dow gained 87.37 points or 0.23 percent to finish at 37,903.29, while the NASDAQ slumped 52.34 points or 0.33 percent to end at 15,605.48 and the S&P 500 lost 17.30 points or 0.34 percent to close at 5,018.39.

The late-day volatility came after the Fed announced its widely expected decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective.

Members of the Fed also reiterated they need greater confidence inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

On the economic data front, payroll processor ADP released a report showing private sector employment increased by more than expected in the month of April.

Oil prices fell to a seven-week low on Wednesday after data showed an unexpected sharp jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for June ended lower by $2.93 at $79.00 a barrel, the lowest settlement since March 12.