Singapore Bourse Likely To Remain Rangebound

(RTTNews) - The Singapore stock market on Thursday snapped the two-day winning streak in which it had risen just 6 points or 0.15 percent. The Straits Times Index now sits just above the 3,880-point plateau, and it may spin its wheels again on Friday.

The global forecast for the Asian markets is negative on U.S. deficit concerns and treasury yields. The European and U.S. markets were mostly soft and the Asian bourses are expected to open in similar fashion.

The STI finished barely higher on Thursday following losses from the property stocks and mixed performances from the financial shares and industrial issues.

For the day, the index dipped 2.46 points or 0.06 percent to finish at 3,880.09 after trading between 3,857.11 and 3,881.85.

The lead from Wall Street is weak as the major averages opened lower on Thursday but spent all day bouncing back and forth across the line, finally ending mixed and little changed.

The Dow dipped 1.35 points or 0.00 percent to finish at 41,859.09, while the NASDAQ rose 53.09 points or 0.28 percent to close at 18,925.73 and the S&P 500 slipped 2.60 points or 0.04 percent to end at 5,842.01.

Stocks showed a lack of direction early in the session but gradually moved to the upside as traders kept a close eye on treasury yields - which have moved sharply higher on concerns about the fiscal impact of the Republican tax cut bill.

The yield on the benchmark 10-year note reached its highest levels in over three months early in the day but turned lower over the course of the session. The downturn by treasury yields generated some positive sentiment on Wall Street, but buying interest waned going into the end of the day.

The tax cut bill passed the House on Thursday, but analysts warn it could add trillions to the federal government's already massive debt. The plan has sparked fears of an even wider deficit, especially as interest payments continue to soar.

After slumping in the previous session, crude oil saw further downside on Thursday after reports suggested that OPEC members are discussing a third consecutive oil production surge in July. West Texas Intermediate crude for July delivery slid $0.37 or 0.6 percent to $61.20 a barrel.

Closer to home, Singapore will see April numbers for consumer prices later today; in March, overall inflation was down 0.1 percent on month and up 0.9 percent on year, while core CPI rose an annual 0.5 percent.