Stock Market in Singapore Set to Climb on Tuesday Morning
In a recent turn of events, the Singapore Stock Market, specifically the Straits Times Index (STI), has shown signs of recovery after halting a six-day losing streak on Monday. This comes amidst a cautiously optimistic outlook for the Asian markets [2][5][4].
The STI finished Monday's trading session sharply higher, with gains among financial shares, property stocks, and industrial issues. The Dow Jones Industrial Average jumped 585.06 points or 1.34 percent to finish at 44,173.64, while the S&P 500 gained 91.93 points or 1.47 percent to close at 6,329.94. The NASDAQ rallied 403.45 points or 1.95 percent to end at 21,053.58 [1].
The European and U.S. markets were also sharply higher on Monday, reflecting a positive global economic forecast [1]. However, the STI's recent performance indicates some market hesitation, with the index slipping by about 0.28% to 0.3% [2][5]. This cautious approach can be attributed to lingering risks related to global economic tariffs and uncertainties [5].
Despite these concerns, long-term STI forecasts remain positive. The index is projected to grow steadily through late 2025, with values rising from around 4057 in August 2025 to about 4267 by December 2025 [1].
Singapore's economy has outperformed the first half of 2025, prompting an upgraded growth outlook. The country's key exports rose moderately by 7.1% in Q2 2025, yet the full-year export growth forecast remains modest at the lower end of 1%-3% [3]. This suggests that while external tariff concerns and global uncertainties still weigh on market sentiment, the economy is showing signs of resilience.
The chances of a quarter point rate cut in September by the Federal Reserve have jumped to 91.9 percent from 63.1 percent a week ago, according to CME Group's FedWatch Tool. Optimism that the weak jobs data will lead the Federal Reserve to lower interest rates next month has increased buying interest [6].
In Singapore, retail sales were up 1.0 percent on month and 1.4 percent on year in May [7]. Singapore will provide June figures for retail sales later today. Shares of CapitaLand Ascendas REIT accelerated 2.19 percent on Monday, while CapitaLand Integrated Commercial Trust spiked 2.28 percent [8].
Crude oil continued to decline on Monday due to oversupply concerns and fears of a tariff-induced slowdown by the global economy. West Texas Intermediate crude for September delivery was down $1.06 or 1.57 percent at $66.27 per barrel [9].
In summary, the Singapore stock market is showing signs of recovery, with positive medium-term prospects but still facing near-term volatility and external uncertainties. Asian markets broadly show cautious optimism but mixed short-term performance. The market's resilience and the positive economic backdrop provide a promising outlook for the future.
In light of the positive closing of financial shares, property stocks, and industrial issues on the Straits Times Index (STI), investing in the industry sector of Singapore's stock market could potentially yield returns. The recent rise in retail sales in Singapore, as indicated by the 1.0% increase on month and 1.4% increase on year in May, might reflect a positive trend in the overall business environment. Conversely, the decline in crude oil prices due to concerns of oversupply and tariff-induced slowdown could affect the technology sector and general news related to the energy market.
