The Singapore stock market has finished lower in three straight sessions, sinking more than 20 points or 0.7 percent along the way. The Straits Times Index now sits just beneath the 3,140-point plateau and it's likely to take further damage on Wednesday.
The global forecast for the Asian markets is negative on concerns over the coronavirus and for the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The STI finished barely lower on Tuesday following weakness from the plantations and a mixed picture from the financial sector.
For the day, the index eased 0.16 points or 0.01 percent to finish at 3,138.81 after trading between 3,130.56 and 3,166.95. Volume was 1.84 billion shares worth 1.20 billion Singapore dollars. There were 316 decliners and 220 gainers.
Among the actives, Ascendas REIT and DBS Group both dropped 0.33 percent, while CapitaLand rose 0.25 percent, CapitaLand Integrated Commercial Trust added 0.48 percent, City Developments gathered 0.73 percent, Comfort DelGro spiked 1.92 percent, Dairy Farm International fell 0.25 percent, Mapletree Commercial Trust sank 0.47 percent, Mapletree Logistics Trust advanced 0.56 percent, Oversea-Chinese Banking Corporation gained 0.42 percent, SATS jumped 1.27 percent, SembCorp Industries climbed 0.96 percent, Singapore Airlines soared 2.20 percent, Singapore Exchange tumbled 1.18 percent, Singapore Press Holdings retreated 1.08 percent, Thai Beverage declined 0.76 percent, United Overseas Bank collected 0.19 percent, Wilmar International skidded 1.12 percent, Yangzijiang Shipbuilding perked 0.72 percent and Genting Singapore, Keppel Corp, Singapore Technologies Engineering and SingTel were unchanged.
The lead from Wall Street is soft as the major averages opened lower on Monday and remained in the red throughout the session.
The Dow shed 85.79 points or 0.24 percent to finish at 35,058.51, while the NASDAQ plummeted 180.14 points or 1.21 percent to end at 14,660.58 and the S&P 500 sank 20.84 points or 0.47 percent to close at 4,401.46.
The pullback on Wall Street reflected uncertainty ahead of the Federal Reserve's monetary policy announcement later today. Traders are likely to pay close attention to the Fed's statement for any clues the central bank is considering scaling back its asset purchase program.
Negative sentiment may also have been generated in reaction to news that the CDC has recommend that people vaccinated for the coronavirus resume wearing masks indoors in areas of high transmission, particularly the South and West.
In economic news, the Commerce Department said new orders for U.S. manufactured durable goods saw continued growth in June. Also, the Conference Board said consumer confidence in the U.S. saw a slight improvement from an upwardly revised level in July.
Crude oil priced drifted lower on Tuesday after moving around the flat line for much of the day's session, with traders weighing demand prospects and looking ahead to weekly inventory data. West Texas Intermediate Crude futures for September dipped $0.26 or 0.4 percent at $71.65 a barrel.
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