Singapore market trends Thursday: US bombing attempts set to whack sentiment

Sculpture by Jimmie Durham, titled ‘Still Life with Spirit and Xitle,’ made of car, volcanic stone and acrylic paint at the Hirshorn museum in Washington, DC. Photo taken July 2018.Sculpture by Jimmie Durham, titled ‘Still Life with Spirit and Xitle,’ made of car, volcanic stone and acrylic paint at the Hirshorn museum in Washington, DC.

Singapore’s shares appear set to tumble at the open after Wall Street took a major hit on Wednesday following an apparent series of domestic terrorist attacks, with early Asia markets opening sharply lower.

Bombs were mailed to former Secretary of State Hillary Clinton, former President Barack Obama, other Democratic politicians, Eric Holder and news channel CNN — similar to a bomb found outside activist billionaire George Soros’ home, in an apparent series of domestic terrorist attacks. U.S. President Trump has at one time or another singled out all of the recipients for abuse and has previously declared some of them “enemies.”

The news came into an already jittery market concerned about the Federal Reserve’s interest rate hikes, the aging of the economic recovery and the Trump administration’s general belligerence.

“The Trump administration continues to wage war with the world, against Russia, against China; there are bombs sent to the press, who the president faults for their phony news stories and celebrates those who tackle reporters, take them down, literally,” Chris Rupkey chief financial economist at MUFG Union Bank, said in a note on Wednesday U.S. time. “The Midterm elections are coming with coverage that calls it the biggest election in history in terms of setting the direction for the country. Why wouldn’t stock market investors panic?”

That overshadowed positive earnings news from Boeing.

Indexes

Japan’s Nikkei 225 index tumbled at the open, shedding 3.30 percent in early trade, while South Korea’s Kospi lost 2.15 percent.

Singapore’s Straits Times Index edged up 0.02 percent to 3032.08 on Wednesday; October futures for the index were at 3032 on Wednesday, while November and December futures were at 3034 and 3032 respectively.

Hong Kong’s Hang Seng Index shed 0.38 percent to 25,249.779 on Wednesday, while China’s CSI 300 was up 0.15 percent at 3188.202.

Indonesia’s IDX Composite index fell 1.53 percent to 5709.42, while Malaysia’s KLCI lost 0.45 percent to 1690.04.

The Dow Jones Industrial Average dropped 2.41 percent to 24,583.42 on Wednesday, the Nasdaq Composite tumbled 4.43 percent to 7108.401 and the S&P 500 lost 3.09 percent to 2656.10. Futures for the three indexes were slightly in the green in early trade.

Currencies

The U.S. dollar index was at 96.30 at 8:08 A.M. SGT after it rose as high as 96.50 in Wednesday’s trade, spiking up from as low as 95.94 early in the previous session, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.106 percent at 8:19 A.M. SGT, dropping from as high as 3.163 percent early in Wednesday’s session, according to Tullett Prebon data.

The euro/dollar was at 1.1406 at 8:21 A.M. SGT after trading in a 1.1378 to 1.1477 range on Wednesday, according to DZHI data.

The dollar/yen was at 111.885 at 8:21 A.M. SGT after trading in a 112.06 to 112.744 range on Wednesday, according to DZHI data.

The dollar/yuan closed Wednesday at 6.9419 after trading in a 6.9348 to 6.9440 range on Wednesday, according to DZHI data.

The dollar/Singapore dollar was at 1.3806 at 8:22 A.M. after trading in a 1.3767 to 1.3815 range on Wednesday, according to DZHI data.

The dollar/Indonesian rupiah ended Wednesday at 15,195 after trading in a 15,175 to 15,200 range on Wednesday, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1650 at 7:58 A.M. SGT after trading in a 4.1593 to 4.1660 range on Wednesday, according to DZHI data.

Oil

Nymex WTI crude oil futures for December were down 0.96 percent at US$66.18 a barrel at 7:56 A.M. SGT, while ICE Brent crude oil futures for December were off 0.35 percent at US$76.17 a barrel at 5:59 A.M. SGT, according to Bloomberg data.

Read more: Crude looks set to weaken in Asia trade Thursday on mixed EIA data

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