(RTTNews) - The Singapore stock market has moved lower in back-to-back sessions, falling more than 40 points or 1.1 percent along the way. The Straits Times Index now sits just shy of the 3,780-point plateau and the losses may accelerate on Thursday.
The global forecast for the Asian markets suggests major consolidation on the deteriorating outlook for interest rates. The European markets were mixed and flat and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.
The STI finished modestly lower following losses from the financials and mixed performances from the properties and industrials.
For the day, the index shed 20.31 points or 0.53 percent to finish at 3,779.62 after trading between 3,778.47 and 3,799.70.
Among the actives, City Developments and UOL Group both lost 0.19 percent, while Comfort DelGro dropped 0.68 percent, DBS Group tumbled 1.90 percent, Frasers Logistics & Commercial Trust sank 0.56 percent, Oversea-Chinese Banking Corporation slumped 0.71 percent, SATS gained 0.56 percent, SembCorp Industries advanced 0.93 percent, Singapore Technologies Engineering climbed 1.11 percent, SingTel rallied 0.96 percent, Thai Beverage added 0.89 percent, Yangzijiang Shipbuilding shed 0.35 percent and Genting Singapore, Hongkong Land, Keppel DC REIT, Keppel Ltd, Mapletree Pan Asia Commercial Trust, Wilmar International, Yangzijiang Financial, CapitaLand Integrated Commercial Trust, CapitaLand Investment, Seatrium Limited, DFI Retail Group, Mapletree Logistics Trust, Mapletree Industrial Trust and Emperador were unchanged.
The lead from Wall Street is brutal as the major averages opened flat on Wednesday and stayed that way for most of the session before plummeting after the FOMC's interest rate statement.
The Dow crashed 1,123.03 points or 2.58 percent to finish at 42,326.87, while the NASDAQ tanked 716.37 points or 3.56 percent to close at 19,392.69 and the S&P 500 sank 178.45 points or 2.95 percent to end at 5,872.16.
The sell-off on Wall Street came after the Federal Reserve announced its widely expected decision to lower interest rates by a quarter-point but forecast fewer than previously estimated rate cuts next year.
With the rate cut almost universally expected, the focus of the announcement was on Fed officials' latest economic projections. The latest projections suggest rates will be in a range of 3.75 to 4.0 percent by the end of 2025 compared to the range of 3.25 to 3.50 percent forecast in September.
Assuming the Fed lowers rates by a quarter-point, the projections point to just two rate cuts next year compared to the four previously forecast as Fed officials expect inflation to come in hotter than previously estimated in 2025.
Crude oil prices climbed higher on Wednesday, rebounding from recent losses after data showed a drop in crude inventories and an increase in gasoline stockpiles last week. West Texas Intermediate Crude oil futures for January closed up $0.50 or 0.71 percent at $70.58 a barrel.
