STI gets reprieve from trade, economic woes

A COMBINATION of investors moving to defensive plays and buying up oversold counters, as well as hopes that the US Federal Reserve would lower interest rates saw the local market get off to a positive but cautious start to June.

The Straits Times Index (STI) built on Monday's gains to close at 3,142.37, up 18.91 points or 0.6 per cent.

While the local market caught some reprieve, trade and economic worries still dominate sentiment globally. The effects of trade tariffs between the US and China have already shown in weaker purchasing managers index (PMI) figures for May, an indicator often used to anticipate economic growth.