SINGAPORE stocks slipped into negative territory on Friday (Dec 13) morning, after China deepens its stimulus drive in a bid to brace for trade tensions with the US.
As at 9.01 am, the Straits Times Index (STI) fell 5.72 points or 0.2 per cent to 3,803.55. Across the broader market, losers outnumbered gainers 40 to 29, with 21.4 million securities worth S$34.8 million changing hands.
Genting Singapore was the most actively traded counter in terms of volume, rising 1.3 per cent or S$0.01 to S$0.78, with 2.9 million shares transacted.
Shares of Thai Beverage were briskly traded as well, declining 0.9 per cent or S$0.005 to S$0.565. Units of Mapletree Logistics Trust also dipped by 0.8 per cent or S$0.01 to S$1.26.
Banking stocks were mixed at open. UOB was down 0.6 per cent or S$0.22 at S$37.03, while OCBC declined by 0.2 per cent or S$0.03 to S$16.77. DBS was trading flat at S$43.80.
Hong Kong and China stocks bounced strongly on Thursday. In addition, except a fall of 1.4 per cent or more on Friday, blue-chip Chinese stocks will clock their third weekly rise in a row – a winning streak not witnessed since May.
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China recently concluded its Central Economic Work Conference on Thursday, and pledged to increase the budget deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate. This is to prepare for increased trade tensions with the US, with President-elect Donald Trump to come to power soon.
The Chinese yuan came under renewed pressure against the US dollar, inching 0.03 per cent lower at 7.2637 to the greenback after trading in a range of 7.2565 to 7.2677, with China considering weakening the yuan to tide through the risk of US trade tariffs.
Wall Street stocks fell on Thursday, after US wholesale inflation came in higher than expected at 0.4 per cent last month seasonally adjusted, up from 0.3 per cent in October.
Markets however continue to bet that the US Federal Reserve will cut interest rates later this month, despite the the country’s inflation report.
The tech-rich Nasdaq Composite Index dropped 0.7 per cent to 19,902.84, after closing above 20,000 for the first time on Wednesday.
The Dow Jones Industrial Average also declined 0.5 per cent to 43,914.12, while the broad-based S&P 500 shed 0.5 per cent to 6,051.25.
In Europe, stocks settled lower on Thursday, after the European Central Bank cut interest rates by 25 basis points as expected, and left the door open for further easing to support a struggling economy amid heightened political risks.
The pan-European Stoxx 600 index closed a choppy session at 519.2 points, down 0.1 per cent, although rate-sensitive eurozone bank shares edged up 0.3 per cent.
