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Singapore Market Expected To Remain Rangebound

The Singapore stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had gathered more than 55 points or 1.6 percent. The Straits Times Index now rests just above the 3,430-point plateau and it figures to hold steady in that neighborhood again on Wednesday.

The global forecast for the Asian markets is mixed and flat ahead of key central bank meetings in the next few days. The European markets were slightly lower and the U.S. bourses were mixed and flat - and the Asian bourses figure to split the difference.

The STI finished modestly lower on Tuesday following losses from the financials, industrials and properties.

For the day, the index dropped 11.00 points or 0.32 percent to finish at 3,430.69 after trading between 3,428.54 and 3,449.40. Volume was 1.69 billion shares worth 967.9 million Singapore dollars. There were 227 decliners and 155 gainers.

Among the actives, Hutchison Port Holdings plummeted 4.76 percent, while Golden Agri-Resources soared 1.61 percent, City Developments plunged 1.45 percent, StarHub spiked 1.09 percent, Yangzijiang Shipbuilding tumbled 1.01 percent, Genting Singapore advanced 0.79 percent, Oversea-Chinese Banking Corporation skidded 0.71 percent, Keppel Corp dropped 0.66 percent, Thai Beverage added 0.63 percent, DBS Group shed 0.59 percent, United Overseas Bank lost 0.50 percent and CapitaLand, CapitaLand Commercial Trust, SingTel, Singapore Exchange, SembCorp Industries, CapitaLand Mall Trust and Wilmar International all were unchanged.

The lead from Wall street is cautiously optimistic as stocks showed a lack of direction on Tuesday, bouncing back and forth across the unchanged line before ending mixed.

The Dow fell 1.58 points or 0.01 percent to 25,320.73, while the NASDAQ climbed 43.87 points or 0.57 percent to 7,703.79 and the S&P 500 rose 4.85 points or 0.17 percent to 2,786.85.

The soft performance came ahead of monetary policy announcements by the Federal Reserve and the European Central Bank. The Fed is widely expected to raise interest rates by 25 basis points on Wednesday, while the ECB may discuss ending its bond purchasing program on Thursday.

In economic news, the Labor Department reported a modest increase in consumer prices in May, while core CPI edged up to a 15-year high.

Traders largely shrugged off the meeting between President Donald Trump and North Korean leader Kim Jong Un - who pledged to work together to "build a lasting and stable peace regime on the Korean Peninsula."

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