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Singapore Bourse May Extend Losing Streak

The Singapore stock market has moved lower in consecutive trading days, sliding almost 40 points or 1.6 percent along the way. The Straits Times Index now rests just above the 2,630-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is mixed to lower, with technology stocks expected to weigh heavily - while growing coronavirus concerns add to the negative sentiment. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The STI finished modestly lower on Monday following losses from the financial shares and industrials, while the properties came in mixed.

For the day, the index fell 21.57 points or 0.81 percent to finish at 2,631.08 after trading between 2,629.68 and 2,670.93.

Among the actives, City Developments plummeted 3.90 percent, while Thai Beverage plunged 3.55 percent, SATS tanked 3.47 percent, Singapore Technologies Engineering tumbled 2.39 percent, Wilmar International skidded 1.64 percent, Singapore Airlines retreated 1.57 percent, Singapore Press Holdings declined 1.56 percent, Mapletree Commercial Trust surrendered 1.53 percent, CapitaLand dropped 1.37 percent, Ascendas REIT jumped 1.23 percent, CapitaLand Mall Trust advanced 0.99 percent, Singapore Exchange sank 0.84 percent, Keppel Corp shed 0.83 percent, United Overseas Bank lost 0.76 percent, Oversea-Chinese Banking Corporation fell 0.65 percent, CapitaLand Commercial Trust added 0.57 percent, Yangzijiang Shipbuilding slid 0.53 percent, DBS Group slipped 0.51 percent, Mapletree Logistics Trust gained 0.50 percent, SingTel eased 0.40 percent and Genting Singapore, SembCorp Industries and Comfort DelGro were unchanged.

The lead from Wall Street is negative as stocks opened sharply higher on Monday before the gains dissipated in afternoon trade and fell into the red.

The Dow added 10.50 points or 0.04 percent to finish at 26,085.80, while the NASDAQ plummeted 226.60 points or 2.13 percent to end at 10,390.84 and the S&P 500 sank 29.82 points or 0.94 percent to close at 3,155.22.

The sharp pullback by the NASDAQ came as tech giants like Netflix (NFLX), Tesla (TSLA), Amazon (AMZN) and Facebook (FB) showed substantial downturns after reaching new record intraday highs.

The afternoon sell-off on Wall Street also came as California Governor Gavin Newsom rolled back the state's reopening following a recent spike in coronavirus cases.

The early rally on Wall Street followed upbeat news regarding a potential coronavirus vaccine. Pfizer (PFE) and BioNTech (BNTX) announced that two of the companies' vaccine candidates received Fast Track designation from the U.S. Food and Drug Administration.

The upbeat news on the vaccine front came as the U.S. has reported more than 60,000 new coronavirus cases for three days in a row, with Florida seeing a record 15,299 new cases on Sunday.

Crude oil prices slipped on Monday as concerns about the energy demand outlook resurfaced amid worries about rising new coronavirus cases. West Texas Intermediate Crude oil futures for August fell $0.45 or 1.1 percent at $40.10 a barrel.

Closer to home, Singapore will see an advance estimate for Q2 gross domestic product later this morning. GDP is expected to plummet 37.4 percent on quarter and 10.5 percent on year after slipping 4.7 percent on quarter and 0.7 percent on year in the previous three months.

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