Singapore Stock Market May Give Up Support At 5,700 Points

(RTTNews) - The Singapore stock market on Tuesday ended the modest two-day winning streak in which it had added almost 50 points or 0.8 percent. The Straits Times Index now sits just above the 5,700-point plateau and it's expected to open in the red again on Wednesday.

The global forecast for the Asian markets is soft due to concerns over inflation and crude oil prices. The European and U.S. markets were down and the Asian markets figure to follow suit.

The STI finished sharply lower on Tuesday following losses from the financial shares, trusts and industrials.

For the day, the index dropped 67.06 points or 1.16 percent to finish at 5,701.40 after trading between 5,686.51 and 5,738.74.

The lead from Wall Street is negative as the major averages opened lower on Tuesday and remained in the red throughout the session, ending at session lows.

The Dow shed 116.38 points or 0.22 percent to finish at 53,343.40, while the NASDAQ dropped 355.20 points or 1.33 percent to end at 26,289.71 and the S&P 500 sank 53.30 points or 0.69 percent to close at 7,691.76.

The weakness on Wall Street came amid worries about an increase in bond yields, with the 30-year bond yield reaching its highest levels in nearly two decades before easing. Treasury yields have moved to the upside amid lingering concerns about the outlook for inflation due to the ongoing conflict in the Middle East.

Crude oil prices have extended the surge seen over the two previous sessions after President Donald Trump said there are currently no U.S.-Iran talks taking place or scheduled.

Crude oil prices edged higher on Tuesday as hopes for U.S.-Iran talks over the Strait of Hormuz have faded. West Texas Intermediate crude for September delivery was up $0.39 or 0.46 percent at $84.89 per barrel.

In U.S. economic news, the Federal Reserve said industrial production in the U.S. rose by slightly less than expected in the month of July.