Potential Increase in Downward Trend for Singapore's Stock Exchange Markets
Amid a generally cautious and slightly negative tone, Asian markets are expected to open in the red on Monday, July 7, 2025. This subdued trading condition is primarily due to ongoing tariff concerns linked to the U.S., including unresolved trade talks and the threat of new unilateral tariffs announced by President Trump.
The U.S.-Thai trade tensions are one of the key factors impacting the markets. Recent US-Thai trade talks yielded no conclusion, and the U.S. is pressing to curb AI chip exports to Thailand and Malaysia to limit China’s access. This added pressure on the Thai market alongside political instability and new trading rules like the HFT threshold on SET100, which may reduce trading volumes, has caused the Thai SET Index to close lower last Friday and is forecast to face resistance at 1,130 and support between 1,100-1,110 points today.
Chinese markets slid with the CSI 300 down 0.6% amid investor caution ahead of key inflation data. Similarly, Japan's Nikkei and Australia's ASX also dipped, reflecting a cautious risk sentiment. The heightened tariff pressure, with the Trump administration intensifying pressure on trading partners to reach new trade deals before the Wednesday tariff deadline, is causing uncertainty and weighing on market sentiment.
In Singapore, the Straits Times Index (STI) is close to the 4,015-point plateau and is expected to open in the red. The STI finished 5.95 points lower on Friday, with losses from the properties and industrials sector partially offset by support from the financial sector. Key stocks in Singapore include Singapore Technologies Engineering, which tanked 1.89 percent, while United Overseas Bank rose 0.22 percent, Wilmar International gained 0.34 percent, Oversea-Chinese Banking Corporation collected 0.24 percent, SATS fell 0.65 percent, SembCorp Industries shed 0.70 percent, and DBS Group added 0.58 percent.
In the real estate sector, CapitaLand Ascendas REIT dipped 0.36 percent, while CapitaLand Integrated Commercial Trust skidded 0.90 percent. Mapletree Pan Asia Commercial Trust stumbled 1.56 percent, Mapletree Industrial Trust slumped 0.97 percent, and Mapletree Logistics Trust sank 0.84 percent.
The global forecast for the Asian markets remains soft due to ongoing tariff concerns. The EU acknowledges that a comprehensive deal is unlikely to be reached by the July 9 deadline. The Middle East geopolitical concerns have eased, contributing to the crude oil price drop. Crude oil prices slumped on Friday, with West Texas Intermediate crude for August delivery finishing at $66.49 per barrel.
It is worth noting that the European markets were down on Friday, and the U.S. bourses were closed for the July 4 holiday. The EU has expressed concerns about U.S. tariffs, and the U.S. President Donald Trump has announced that letters outlining unilateral tariffs, effective August 1, will be sent to trading partners. There is also concern over Trump's "Big, Beautiful Bill," which will add at least $3.3 trillion to the U.S.'s national debt.
In conclusion, investors across the region are adopting a cautious approach due to the escalating tariff concerns. The looming deadline for new U.S. tariffs and the lack of progress in trade talks are creating uncertainty in the markets. As the situation unfolds, it is essential to stay informed and make decisions based on accurate and up-to-date information.
The heightened tariff pressure in the U.S., particularly with regards to AI chip exports and ongoing trade talks, is impacting not only the Thai market but also the broader Asian business landscape, creating uncertainty that is weighing on the industry and finance sectors. The looming deadline for new U.S. tariffs and the lack of progress in trade talks are causing a cautious approach among investors across the region, affecting both financial decisions and the general sentiment of the business world.
