Investors cautious ahead of Powell’s address, US inflation data; STI down 0.4%
Across the broader market, losers beat gainers 267 to 238, after 1.4 billion securities worth S$1.3 billion change hands
SINGAPORE stocks retreated from the previous day’s advance to close lower on Tuesday (Feb 11), as investors stayed cautious ahead of market-moving messages from Federal Reserve chair Jerome Powell’s testimony and US inflation data.
The Straits Times Index (STI) ended down 0.4 per cent or 14.37 points at 3,860.76. Across the broader market, losers beat gainers 267 to 238, after 1.4 billion securities worth S$1.3 billion changed hands.
On the STI, Sats was the top gainer, up 1.9 per cent or S$0.06 at S$3.29. Mapletree Industrial Trust fell the most, down 3.3 per cent or S$0.07 at S$2.06.
Powell on Tuesday is expected to make his first Congressional appearance since US President Donald Trump’s inauguration. Markets expect the semi-annual testimony to cover Trump’s tariff policies, as well as the outlook for interest rates and inflation.
Ipek Ozkardeskaya of Swissquote Bank thinks the Fed chair will adopt a cautious approach despite mounting pressure from the Trump administration to lower rates.
“After all, US growth remains solid, the jobs market healthy and inflation sticky. And Trump’s growth-boosting policies and tariff threats threaten to make it stickier... A hawkish stance from Powell could further boost dollar appetite and temper gains in US equities,” Ozkardeskaya said.
In between Powell’s two-day testimony, the January reading of the US consumer price index will be released on Wednesday night (in Asia).
South Korea’s Kospi gained 0.7 per cent, while Hong Kong’s Hang Seng retreated 1.1 per cent. Tokyo and KL markets were closed for a holiday.
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