Singapore Stock Market May Run Out Of Steam On Wednesday

(RTTNews) - The Singapore stock market has finished higher in two straight sessions, gathering almost 70 points or 1.2 percent along the way. The Straits Times Index now sits just above the 5,720-point plateau although it may spin its wheels on Wednesday.

The global forecast for the Asin markets is murky, with profit taking likely offset by sinking oil prices. The European and U.S. markets were mixed and little changed and the Asian markets are expected to follow that lead.

The STI finished modestly higher on Tuesday following gains from the financial shares, technology stocks and industrial issues, while the communication sectors were soft.

For the day, the index improved 48.53 points or 0.86 percent to finish at 5,723.76 after trading between 5,663.60 and 5,737.33.

The lead from Wall Street offers little clarity as the major averages opened mixed on Tuesday, faded midday but recover to end on oppositive sides of the line and largely unchanged.

The Dow sank 185.14 points or 0.36 percent to finish at 51,863.69, while the NASDAQ gained 122.18 points or 0.45 percent to close at a fresh record high of 27,244.28 and the S&P 500 eased 0.06 points or 0.00 percent to end at 7,764.64.

The early choppiness came as investors digested comments from U.S. President Donald Trump, who told the United Nations General Assembly that a deal with Iran may be possible after the midterm elections but said that he may instead just decide to "annihilate the Islamic Republic." He also spoke of setting up a "large military presence" on Greenland.

Stocks slumped in reaction but recovered later in the day as energy prices continued to fall, easing inflation concerns and the possibility of another interest rate hike from the Federal Reserve.

Crude oil prices fell on Tuesday, losing for a fifth straight session amid hopes that diplomatic efforts may end the conflict between U.S. and Iran. West Texas Intermediate crude for November delivery was down $5.20 or 5 percent to $90.50 per barrel.

Closer to home, Singapore will see August numbers for consumer prices later today; in July, overall inflation was down 0.2 percent on month and up 2.2 percent on year, while core CPI rose an annual 2.00 percent.