STI slips 0.55% as region turns into a sea of red on possible greater rate hikes

SINGAPORE shares joined its counterparts in the Asia-Pacific region to close in the red on Thursday (Apr 7), after the United States central bank's minutes released overnight suggested that greater interest rate hikes are on the cards.

The Straits Times Index (STI) was 18.72 points or 0.55 per cent lower at 3,404.23 points. Oanda senior market analyst Jeffrey Halley said: "Asian equity markets are lower today as they follow Wall Street south, digest the implications of a faster tightening Federal Reserve, and cast a nervous eye over China and its virus situation."

The Federal Open Market Committee minutes showed that there might be a faster pace of reducing its bond holdings, targeting US$95 billion per month from September, easing into the process from next month. The minutes suggested that the Federal Reserve might also jack up interest rates in 0.5 percentage-point steps from next month if inflation stays high.