The Singapore stock market has closed lower now in consecutive trading days, shedding almost 30 points or 1.1 percent along the way. The Straits Times Index finished just above the 2,770-point plateau, and now analysts are forecasting further damage at the opening of trade on Friday.
The global forecast for the Asian markets is mixed to lower on Friday, thanks to perpetual concerns about Europe plus soft economic data from the U.S. The European Central Bank President Mario Draghi said on Thursday that the bank cannot fix the turmoil in the currency bloc and urged Eurozone leaders to come up with a 'vision' for years ahead. In addition, Ireland is voting in a referendum, although opinion polls show that the country will back the new German-backed EU fiscal treaty. Across the pond, the U.S. saw weak reports on private sector job growth and initial jobless claims. The European and U.S. markets were mostly lower, and the Asian bourses are tipped to follow suit.
The STI finished modestly lower on Thursday as losses from the plantation stocks were limited by support from the property sector.
For the day, the index shed 11.41 points or 0.41 percent to finish at 2,772.54 after trading between 2,760.90 and 2,782.58. Volume was 1.52 billion shares worth 1.34 billion Singapore dollars. There were 175 gainers and 150 decliners.
Among the decliners, Jardine Strategic Holdings shed 2.7 percent, while Jardine Matheson Holdings lost 1.8 percent, Golden Agri-Resources fell 1.5 percent, Noble Group slid 1.3 percent, Wilmar International retreated 1.1 percent and Olam International eased 0.60 percent.
Moving higher, CapitaLand jumped 1.6 percent, CapitaMalls Asia climbed 2.6 percent and CapitaMall Trust spiked 2.8 percent.
The lead from Wall Street suggests mild negativity as stocks moved sharply lower in early trading on Thursday, although the markets later staged a notable recovery. Selling pressure re-emerged in late-day trading, however, resulting in a lower close.
The early sell-off followed a slew of U.S. economic data, including reports providing further signs of sluggishness in the labor market. Considerable selling pressure was generated by a report from payroll processor ADP showing weaker than expected private sector job growth.
ADP said private sector employment rose by 133,000 jobs in May following a downwardly revised increase of 113,000 jobs in April. Economists had expected an increase of about 154,000 jobs.
A separate report from the Labor Department showed that initial jobless claims rose to 383,000 in the week ended May 26 from the previous week's revised figure of 373,000. Jobless claims had been expected to come in unchanged at the 370,000 originally reported for the previous week.
The Commerce Department also reported slower than previously estimated first quarter GDP growth, dragging stocks lower along with a report showing that Chicago-area business activity expanded at a much slower rate in May.
The afternoon rebound was spurred by reports that the International Monetary Fund is in talks to provide a bailout to Spain, although the IMF later denied the reports. The pullback that followed came as traders expressed caution ahead of Friday's closely watched monthly employment report.
The major averages all ended the day in the red but well off their worst levels of the day. The Dow edged down 26.41 points or 0.2 percent to finish at 12,393.45, while the NASDAQ fell 10.02 points or 0.4 percent to end at 2,827.34 and the S&P 500 slipped 2.99 points or 0.2 percent to 1,310.33.
In economic news, total bank lending in Singapore increased in April, the Monetary Authority of Singapore said on Thursday. Total loans and advances in April was S$435.3 billion, higher than S$432.61 billion in March and S$351.1 billion in April last year. Housing loans to consumers rose to S$136.1 billion in April from S$134.8 billion in March.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.