STI falls 1.3% on Fed fears, trade tensions

THE Singapore bourse was awash in red on Wednesday, with markets jittery ahead of the United States Federal Reserve's meeting minutes release.

The benchmark Straits Times Index plunged below the 3,500 mark, losing 46.91 points, or 1.32 per cent, to 3,496.27. An afternoon recovery from the opening plunge did not last long, with traders back from their mid-day break to discover lower-than-forecast inflation data for April. Losers trounced gainers 307 to 156 overall, or two down for every one up, with 1.36 billion shares traded for a value of S$1.33 billion.

The Fed minutes, due at 2am on Thursday (Singapore time), will be scrutinised for clues to US policymakers' thinking on interest rate changes.