The Singapore stock market has finished higher now in four consecutive sessions, gathering more than 65 points or 2.2 percent in the process. The Straits Times Index ended just below the 2,930-point plateau, and now analysts are expecting the market to extend its gains when it opens for business on Wednesday.
The global forecast for the Asian markets is broadly positive, thanks to a solid start from the Q2 earnings season. Technology stocks are tipped rise broadly, while financials, airlines and properties also may see strength. The European and U.S. markets ended sharply higher, and the Asian markets are predicted to follow that lead.
The STI finished barely higher on Tuesday, nudged higher by gains from the property sector.
For the day, the index added 3.38 points or 0.12 percent to finish at 2,928.70 after trading between 2,918.86 and 2,938.89.
Among the gainers, Cosco Corp. Singapore added 0.7 percent, while Parkway Life climbed 3 percent, Singapore Press Holdings jumped 1.3 percent, Thomson Medical Centre surged 5.6 percent and Ezra Holdings collected 2.8 percent.
Wall Street put forth an optimistic session as stocks rallied on Tuesday with Intel, Alcoa (AA) and CSX Corp. (CSX) all reporting quarterly results that topped estimates, hinting at a strong earnings season. The major averages all closed firmly positive, rising for the sixth straight session.
Market sentiment was boosted in reaction to aluminum giant Alcoa's second quarter profit compared to a year-ago loss, with the turnaround reflecting a 22 percent jump in revenues. Railroad operator CSX Corp. also helped to generate buying interest by soundly beating profit and revenue projections.
Intel Corp. then said Tuesday after the markets closed that it swung to a $2.9 billion second quarter profit, helped by higher revenue to mark the best quarter in the company's history.
In other corporate news, Tyco Electronics Ltd. (TEL) has agreed to acquire ADC Telecommunications Inc. (ADCT) for $12.75 per share in cash or an enterprise value of $1.24 billion. Shares of both firms ended notably higher on the news.
Meanwhile, the markets largely shrugged off the day's news on economic front. In the afternoon, the Treasury Department reported a budget deficit of $68 billion in June and a deficit of just above $1 trillion for the first nine months of fiscal 2010. The monthly deficit was just below expectations, which called for a budget shortfall of $70 billion. Equities saw essentially no reaction to the report.
Earlier in the day, the Commerce Department released a report showing that the U.S. trade deficit widened to $42.3 billion in May from $40.3 billion in April. The wider trade deficit came as a surprise to economists, who had expected the trade deficit to narrow to $39.4 billion.
In overseas news, Moody's Investor Services downgraded the credit rating of Portugal two notches to A1. However, the rating agency reaffirmed its stable outlook.
The major averages saw some downside in late-session dealing but still finished with strong gains. The Dow jumped by 146.75 points or 1.4 percent to 10,363.02, the NASDAQ advanced by 43.67 points or 2 percent to 2,242.03 and the S&P 500 gained 16.59 points or 1.5 percent to 1,095.34.
In economic news, Singapore is on Wednesday scheduled to release an advanced estimate for second quarter gross domestic product. Analysts are expecting Singapore's GDP to rise 17.3 percent annualized and 23 percent on quarter after jumping 13.1 percent and 32.1 percent, respectively.
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