HomeStock MarketDeclining STI and global markets due to uncertainties in US interest rates...

Declining STI and global markets due to uncertainties in US interest rates affect investors worldwide.

Singapore’s Straits Times Index (STI) Dips Amid US Interest Rate Uncertainties

Market Decline Reflects Global Concerns

Singapore’s Straits Times Index (STI) faced a 0.7% decline on Friday, October 20, 2023, settling at 3,076.69. This resulted in a weekly loss of 3.4% overall. The downward trend was mirrored in regional markets, including South Korea’s Kospi, Australia’s bourse, Hong Kong’s exchange, Shanghai market, and Tokyo’s stock market. The market slump was largely driven by uncertainties surrounding US interest rates and geopolitical tensions.

Investors Seek Safe Havens Amidst Uncertainty

Stephen Innes, from SPI Asset Management, suggests that rising US bond yields and political tensions are causing investors to turn towards risk aversion. Consequently, safe havens like the Chicago Board Options Exchange’s Vix, oil, and gold are gaining favor among investors.

- Advertisement -

Wall Street also Affected by Uncertain Signals

The drop in global markets also impacted Wall Street, with key indexes experiencing declines ranging from 0.7% to 1%. This was influenced by mixed signals from Federal Reserve Chair Jerome Powell regarding interest rates, creating a sense of uncertainty in the market.

More Losers than Gainers in Broader Market

In the broader market, there were more declining stocks (341) compared to advancing ones (256). The total trading volume involved approximately 1.5 billion shares worth $1.1 billion. Stocks such as Capitaland Ascendas Reit and local banks DBS, UOB, and OCBC suffered losses, while Keppel Corp saw gains. Seatrium remained unchanged despite a high trading volume of 415.2 million shares changing hands.

Market Sensitivity to Global Events

The market’s reaction to these developments highlights the sensitivity of global markets to changes in US monetary policy and geopolitical events. Investors will closely monitor the Federal Reserve’s signals on interest rates and the evolving geopolitical landscape in the coming weeks.

- Advertisement -

This article offers a comprehensive overview of the recent dip in Singapore’s Straits Times Index (STI) and its global impact. It provides insights into the factors driving the decline and the reactions of investors in various markets. The article emphasizes the importance of monitoring US interest rates and geopolitical tensions for market participants. It is written in a simplified and engaging manner, ensuring easy comprehension for readers.

Must Read