(RTTNews) – The Singapore stock market has tracked lower in consecutive trading days, sinking almost 35 points or 0.6 percent along the way. The Straits Times Index now sits just above the 5,720-point plateau although it may stop the bleeding on Friday.
The global forecast for the Asian markets is mixed to higher on optimism over the outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The STI finished barely lower on Thursday as losses from the trusts and industrials were offset by support from the financials and properties.
For the day, the index eased 0.70 points or 0.01 percent to finish at 5,720.05 after trading between 5,667.09 and 5,732.39.
The lead from Wall Street suggests mild upside as the major averages opened higher on Thursday, faded midday but then rebounded into the close to end in the green.
The Dow gained 69.72 points or 0.13 percent to finish at 53,839.99, while the NASDAQ jumped 214.54 points or 0.81 percent to end at 26,803.03 and the S&P 500 added 50.49 points or 0.65 percent to close at 7,798.99.
The strength on Wall Street came after the Labor Department reported that producer prices in the U.S. unexpectedly were flat in July.
Combined with Wednesday’s report showing only a slight uptick in consumer prices and last Friday’s report showing an unexpected decrease in jobs, the data added to optimism about the outlook for interest rates.
According to CME Group’s FedWatch Tool, the chances the Federal Reserve raised rates by a quarter point at its next meeting in September have fallen to 34.6 percent from 55.0 percent a week ago.
Crude oil prices slumped on Thursday following reports from energy agencies indicating that global oil demand is set to fall more heavily than expected. West Texas Intermediate crude for September delivery was down $1.76 or 2.11 percent at $81.51 per barrel.
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