(RTTNews) - The Singapore stock market on Wednesday snapped the two-day losing streak in which it had shed more than 30 points or 1.3 percent along the way. The Straits Times Index ended just below the 2,650-point plateau, and now investors are optimistic that the market will tick higher at the opening of trade on Thursday.

The global forecast for the Asian markets is mixed with a touch of upside, as support from the commodities on rising prices could be offset by selling among the financial and technology sectors. The European markets were sharply higher, while the U.S. bourses ended little changed - and the Asian markets are forecast to post modest gains.

The STI finished sharply higher on Wednesday, riding gains from the financials and airlines.

For the day, the index added 27.09 points or 1.03 percent to finish at 2,648.64 after trading between 2,632.98 and 2,650.33. Volume was 1.13 billion shares worth 999 million Singapore dollars. There were 286 gainers and 198 decliners, with 764 stocks finishing unchanged.

Among the gainers, Singapore Airlines, DBS Group Holdings and United Overseas Bank all finished higher.

Wall Street provides little guidance as stocks closed mixed for a second straight session on Wednesday, giving up earlier gains following news that the Federal Reserve left interest rates near record lows amid continued economic concerns. The major averages finished on opposite sides of the unchanged mark, extending their lackluster performance.

The choppy trading came after the Fed left its target for the federal funds rate unchanged in a range from zero to a quarter percent and reiterated its assessment that “exceptionally” low rates will continue for an “extended period.”

Heading into the announcement, the Fed was expected to leave rates unchanged, though there had been some expectation that the central bank would start to pave the way for an eventual rate hike down the road.

The equity markets saw considerable upside this morning as traders bought into the market despite a pair of rather lukewarm economic reports.

The Institute for Supply Management said that activity in the service sector grew for the second consecutive month in October, but the pace of growth unexpectedly slowed compared to the previous month. The index of activity in the service sector edged down to 50.6 in October from 50.9 in September, with a reading above 50 indicating growth in the sector. The decrease by the index came as a surprise to economists, who had expected the index to rise to 51.5.

Separately, Automatic Data Processing, Inc. reported that private sector employment continued to decrease in the month of October, although the pace of job losses slowed for the seventh consecutive month. Non-farm private employment fell by 203,000 jobs in October following a revised decrease of 227,000 jobs in September. Economists had expected a loss of 198,000 jobs compared to the decrease of 254,000 jobs originally reported for the previous month.

The major averages all saw notable downside in late day trading, pushing the tech-heavy NASDAQ into negative territory. The NASDAQ closed down by 1.80 points or 0.1 percent at 2,055.52, while the Dow rose by 30.23 points or 0.3 percent to 9,802.14 and the S&P 500 gained 1.09 points or 0.1 percent to close at 1,046.50.

In economic news, Singapore manufacturing sector expanded at a slower pace in October, a report by the Singapore Institute of Purchasing & Materials Management said on Wednesday.

The Manufacturing Purchasing Managers Index or PMI stood at 50.2 in October, down from 50.6 in September. However, this was the sixth consecutive month of expansion in manufacturing economy. A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.

The decrease in the overall PMI was mainly due to lower new orders and production as well as inventory, the report said. But, new export orders returned to growth in October.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Eurozone, Releases, Stocks, USA.

Subscribe by RSS Subscribe by Email