Singapore Markets Eye Recovery Amid Geopolitical De-escalation and Oil Surge

The Singapore stock market is expected to open with positive momentum on Friday, following a period of cautious trading and a slight retreat in the Straits Times Index (STI). The index closed Thursday at 5,007.83, slipping 13.27 points or 0.27%, which interrupted a two-day winning streak that had seen the market climb nearly 40 points. While losses in the retail and financial sectors weighed on the STI, the decline was partially mitigated by support from industrials and trusts. The index traded within a range between 5,004.41 and 5,039.11 throughout the session, remaining just below the 5,010-point plateau. Global sentiment is currently driven by significant geopolitical developments in the Middle East. A 10-day ceasefire between Israel and Lebanon, announced by President Donald Trump, has fostered optimism across Asian bourses. Furthermore, traders are pricing in the possibility of a second round of peace talks between the United States and Iran to resolve the month-long Gulf conflict. Wall Street provided a supportive backdrop for the region, with the S&P 500 and NASDAQ both hitting record closes. The S&P 500 ended at 7,041.28, while the NASDAQ reached 24,102.70. The Dow Jones Industrial Average also gained, closing at 48,578.72. Despite the diplomatic progress, energy markets remain volatile. West Texas Intermediate (WTI) crude for May delivery surged 3.78% to $94.74 per barrel, as supply disruption concerns persist. In macroeconomic news, the Federal Reserve reported an unexpected decrease in U.S. industrial production for the previous month.