STI snaps 2-day gains, falls 0.2% on Fed ‘shock’

SINGAPORE shares ended a two-day winning streak on Thursday (Dec 15) as cheer over lower-than-expected US inflation data faded, following a hawkish tilt by the Federal Reserve (Fed) overnight.

The key Straits Times Index (STI) retreated 4.82 points or 0.2 per cent to 3,273.75, tracking losses on Wall Street after the Fed scorched the market’s dovish hopes.

Craig Erlam, senior market analyst at Oanda Corporation, said: “Equity markets are back in the red on Thursday, as investors reel from the nasty shock delivered by the Fed, and look ahead to the plethora of central bank rate decisions on the agenda today. Safe to say, investors simply didn’t see that coming.”