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STI falls 11 points on Monday as investors wary about US election meddling probe
THE moving along of the massive US tax cut brought some cheer to the otherwise jittery markets on Monday but it was not enough as Asian markets seem to be wondering how worried they should be when it comes to the US probe into alleged Russian meddling in the presidential election.
The Dow futures were up by over 200 points in the afternoon but the local Straits Times Index (STI) ended Monday's session on a weaker note, dropping 11.07 points or 0.32 per cent to 3,438.47.
Turnover came in at 1.5 billion units worth S$0.8 billion, indicating weak trading. Excluding warrants, losers beat gainers 260 to 175.
The US indices had tumbled over the weekend after US President Donald Trump's former top aide, Michael Flynn, pleaded guilty to lying to the FBI. But they recovered quickly after the massive tax cut went through the Senate.
There are outstanding concerns though, as to how much overseas capital will flow back to the US as investors chase for yield in the form of investments and repatriations.
Analysts are also worried that US policy tightening can potentially suck liquidity from emerging markets and derail global growth.