The Singapore stock market on Thursday ended the five-day losing streak in which it had tumbled more than 130 points or 2.2 percent. The Straits Times Index now sits just beneath the 5,640-point plateau although it may hand those gains back on Friday. The global forecast for the Asian markets is soft ahead of key U.S. jobs data, and on a spike in crude oil prices. The European markets were flat and the U.S. bourses were down and the Asian markets figure to split the difference. The STI finished sharply higher on Thursday following gains from the financial shares, property stocks and industrial companies. For the day, the index climbed 57.62 points or 1.03 percent to finish at 5,638.99 after trading between 5,585.28 and 5,645.72. The lead from Wall Street is weak as the major averages opened higher on Thursday but quickly slipped into the red and remained there for the balance of the day. The Dow dropped 464.02 points or 0.85 percent to finish at 53,885.10, while the NASDAQ dipped 15.09 points or 0.06 percent to close at 16,348.35 and the S&P 500 sank 13.59 points or 0.18 percent to end at 7,709.96. The choppy trading by the broader markets came as traders were reluctant to make significant moves ahead of the Labor Department's closely watched monthly jobs report later today. The report is expected to show employment jumped by 88,000 jobs in July after climbing by 57,000 jobs in June, and it may have a significant impact on the outlook for interest rates. Ahead of the release of the monthly jobs report, the Labor Department released a report showing a slight uptick in first-time claims for U.S. unemployment benefits last week. Crude oil prices surged on Thursday following attacks on Saudi Arabian tankers in the Red Sea. West Texas Intermediate crude for September delivery was up $2.11 or 2.81 percent at $77.33 per barrel.
Among the most affected stocks were Seatrium, which tumbled 4.17 percent, DFI Retail, which slid 2.99 percent, and Yangzijiang Shipbuilding, which fell 2.60 percent. Other notable declines included Genting Singapore, down 1.98 percent, and City Developments, down 1.97 percent. More than a dozen large companies posted losses, with a majority of active stocks ending the day in negative territory. This widespread weakness reflects a fragile market mood, with investors increasingly cautious in the face of uncertain economic signals and global instability.
U.S. markets provided little relief, with the Dow falling 0.76 percent, the S&P 500 slipping 0.80 percent, and the Nasdaq dropping 1.18 percent. Fed officials reiterated in their latest policy meeting that 2024 would likely see rate cuts, but warned of lingering uncertainty. This mixed signal left investors cautious. Although the central bank's minutes suggested optimism about future rate reductions, the mention of an “unusually elevated degree of uncertainty” about the outlook did little to calm nerves.
Recent U.S. economic data offered little hope of a quick turnaround. The Institute for Supply Management reported that manufacturing activity contracted at a slightly slower pace in December, but the overall trend remained negative. Similarly, the Labor Department found that the number of job openings in the U.S. These updates did little to reverse investor worries, as the data pointed to ongoing economic challenges.
Crude oil prices rebounded sharply on fears of renewed attacks by Houthi militants in the Red Sea. West Texas Intermediate crude surged $2.32, or 3.3 percent, to settle at $72.70 a barrel. The price rise came as traders hedged against possible disruptions to global shipping routes. The surge came despite a broader trend of market pessimism and uncertainty about global economic conditions.
Despite the market jitters, a few stocks in the STI gained ground, including Frasers Logistics, up 0.88 percent, and Keppel Ltd, up 0.57 percent. Other companies, such as UOL Group and Sembcorp Industries, were unchanged. However, these gains were not enough to offset the overall market trend. The Singapore market remains under pressure, with few signs of a near-term reversal. A combination of weak domestic performance and a gloomy global outlook continues to shape investor sentiment.
The Singapore stock market's struggles echo broader regional and global trends. With key financial and property firms underperforming, the market's direction appears to be heading downward in the near term. The combination of weak economic data, cautious central bank messaging, and geopolitical risks has left investors on edge, with the likelihood of further declines in Asian markets remaining high.