Singapore market trends Monday: Early Asian markets open lower

Singapore shares face a tough Monday, with negative leads from early Asian trading and from Wall Street last week, amid rising geopolitical tensions and continued signs of political chaos from the White House.

Tensions between Saudi Arabia and the U.S. after the disappearance and likely brutal murder and dismemberment of dissident Saudi journalist Jamal Khashoggi may dampen sentiment. The controversy has included heightened scrutiny of U.S. President Donald Trump’s continuing business ties to the country, which could be in violation of the Constitutional prohibition on “emoluments” from foreign countries.

A week after Khashoggi went missing on Oct. 2, a bipartisan group of U.S. lawmakers sent President Donald Trump a letter triggering an investigation and possible sanctions under the Global Magnitsky Human Rights Accountability Act. However, since Khashoggi’s Oct. 2 disappearance, Trump has called Saudi Arabia an “incredible ally” and said the killing shouldn’t deter U.S. arms sales to the oil-rich kingdom, specifically citing a $110 billion arms sale he announced last year.

Concerns over China’s slowing economy may also continue to drag on traders’ minds as China’s gross domestic product (GDP) data on Friday showed that in the third quarter, the economy grew at its slowest since 2009, during the Global Financial Crisis, missing forecasts.

Moody’s Investors Service cutting Italy’s credit rating to just above junk may also weigh sentiment on Monday.

Indexes

Japan’s Nikkei 225 was off 0.95 percent in early trade, while South Korea’s Kospi was down 0.77 percent at 8:12 A.M. SGT.

Singapore’s Straits Times Index ended Friday down 0.23 percent at 3062.51; October futures for the index were at 3063 on Friday, while November and December futures were at 3066 and 3063 respectively.

Hong Kong’s Hang Seng Index was up 0.42 percent at 25,561.40, while China’s CSI 300 jumped 2.97 percent to 3134.946 on Friday.

Malaysia’s KLCI ended down 0.34 percent at 1732.14 on Friday, while Indonesia’s IDX Composite shed 0.14 percent to 5837.29.

The Dow Jones Industrial Average ended Friday off 1.27 percent at 25,379.45, the Nasdaq Composite shed 0.48 percent to 7449.026 and the S&P 500 inched down 0.04 percent to 2767.78. Futures for the three indexes were down in early trade.

Currencies

The U.S. dollar index, which measures the greenback against a basket of currencies, was at 95.69 at 7:41 A.M. SGT, off levels as high as 96.08 on Friday and as low as 95.59, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.195 percent at 5:02 P.M. ET on Friday after rising as high as 3.208 percent in the session, according to Tullett Prebon data.

The euro/dollar was at 1.1510 at 7:54 A.M. SGT after trading in a 1.1432 to 1.1535 range on Friday, according to DZHI data.

The dollar/yen was at 112.466 at 7:54 A.M. SGT after trading in a 112.11 to 112.648 range on Friday, according to DZHI data.

The dollar/yuan ended Friday at 6.9280 after trading in a 6.9260 to 6.9415 range in the session, according to DZHI data.

The dollar/Singapore dollar was at 1.3773 at 7:55 A.M. SGT after trading in a 1.3758 to 1.3819 range on Friday, according to DZHI data.

The dollar/Indonesian rupiah ended Friday at 15,185 after trading in a 15,175 to 15,223 range in the session, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1457 at 7:34 A.M. SGT after trading in a 4.1500 to 4.1613 range on Friday, according to DZHI data.

Oil

Nymex WTI crude oil futures for November were up 0.07 percent at US$69.17 a barrel at 7:10 A.M. SGT, while ICE Brent crude oil futures for December were up 0.03 percent at US$79.80 a barrel at 7:17 A.M. SGT, according to Bloomberg data.

Read more: Crude headed higher in Asia Monday as US-Saudi Tensions Continue

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