Singapore equities head into Monday’s session with the Straits Times Index (STI) sitting at fresh highs after Friday’s strong close — but with a more complicated global backdrop than the headline level suggests.
On one hand, Singapore’s market narrative has been supported by steady domestic participation (especially in REITs and index names), improving rate expectations, and a year marked by robust benchmark performance. On the other hand, U.S. tech-led volatility has resurfaced, bond yields have jumped, and central-bank risk is building into year-end with major meetings in Japan and Europe in the week ahead.
Here’s what investors and traders may want on their radar before the SGX opens on Monday, 15 December 2025.
Where Singapore left off: STI ends Friday at a record close
Singapore shares ended last week on a strong note, with the STI closing up 1.5% at 4,586.45 on Friday (12 December). [1]
That level matters for two reasons:
- Psychology and positioning: new highs can attract trend-following flows, but also invite profit-taking — especially into the final weeks of the year.
- Sector mix: Singapore’s benchmark is heavy in banks, industrials, and real estate/REIT-linked names, meaning global rates and growth expectations can quickly tilt leadership within the index.
Another sign of underlying support: SGX data for November showed active engagement in index stocks and REITs, with trading value rising year-on-year and retail participation described as particularly strong in REIT counters. [2]
The global cue for Monday: Wall Street fell again, yields rose, and tech jitters returned
Singapore’s Monday open will be reacting to the last U.S. session (Friday), where markets turned risk-off:
- Dow fell 0.51%
- S&P 500 fell 1.07%
- Nasdaq fell 1.69% [3]
The U.S. move wasn’t just “stocks down.” It was “stocks down with rates up,” a combination that often reshuffles leadership in Asia:
- The U.S. 10-year Treasury yield rose 5.1 bps to 4.192%. [4]
For Singapore, this matters because banks, REITs and other yield-sensitive sectors tend to react differently depending on whether yields are rising on growth optimism or rising on inflation worries / policy uncertainty.
Reuters also pointed to renewed caution around big tech and AI-linked valuations as a key pressure point. [5]
That’s relevant for regional sentiment broadly — even if Singapore’s index is not as tech-heavy as the U.S.
Oil and commodities: lower crude can help airlines, but it’s a warning sign for global demand
Crude finished lower on Friday:
- U.S. crude settled around $57.44
- Brent settled around $61.12 [6]
For Singapore-listed names, lower oil can cut both ways:
- Potential winners: airlines and transport-linked names can benefit from reduced fuel pressure (though demand and ticket yields still matter more).
- Potential losers/laggards: energy-linked names may face weaker sentiment, and sharply lower oil can also be read as a macro demand signal, not just a cost tailwind.
Beyond the day-to-day move, oil-market forecasts have also turned more cautionary. A Financial Times report cited expectations of a potential supply-driven glut next year and warned that prices could face further pressure as new supply comes online. [7]
The biggest macro driver to watch: the Fed’s rate path — and a new liquidity operation
Markets are trying to price two things at once:
- The direction of policy rates
- The direction of liquidity
1) Fed rates: cut happened, but dissent and inflation worries remain
The latest Fed decision included a 25-basis-point cut, but also notable dissent and a tone that left investors debating how smooth the path to further easing will be. Reuters reported that officials who opposed the cut signalled concern that inflation remains too high to justify lower borrowing costs. [8]
