The Singapore stock market may experience limited movement on Friday, following two consecutive days of gains that added more than 25 points, or 0.7%, to the Straits Times Index (STI). The index currently sits just below the 3,740 mark, but a cooling trend is expected as global markets react to concerns about future interest rates.

Wall Street's weaker performance is anticipated to influence Asian markets, with the US Federal Reserve signalling no urgency to lower interest rates amid continued economic strength. While European markets showed slight gains, the US downturn may impact Singapore's trading outlook.

On Thursday, the STI closed modestly higher, adding 17.82 points or 0.48% to reach 3,738.16, after fluctuating between 3,699.50 and the daily high. Notable performances included Hongkong Land's 3.64% surge and Yangzijiang Financial's 2.53% rise, while Yangzijiang Shipbuilding fell 1.92%, and Genting Singapore retreated 1.29%.

The mixed results saw several companies in various sectors post modest gains and losses: CapitaLand Investment dipped 0.71%, DBS Group added 0.56%, and SingTel slipped 0.31%. Meanwhile, oil prices closed higher, with West Texas Intermediate Crude futures up 0.4% to settle at US$68.70 a barrel.

Concerns over the Fed's upcoming rate cuts and ongoing inflationary pressures are likely to maintain a cautious sentiment in the market heading into the year-end period.

RTTNews