STI slips amid signs of smaller US rate cut

THE Singapore stock market started the week on the back foot with the Straits Times Index (STI) down 0.61 per cent, in response to signals of a smaller US interest rate cut later this month.

Markets "will likely trade with a more risk cynical bent this week as the less dovish Fed narrative continues to sink in" said Stephen Innes, managing partner at Vanguard Markets, in a note. "Over the next two weeks, the European Central Bank and Federal Open Market Committee will make their policy decisions."

Mr Innes added: "But it is the Fed decision and policy guidance that will be most critical for the markets' risk-on view."