Singapore investors brace for a selldown following Wall Street's rout

The Singapore stock market is likely to open weaker following the overnight rout on Wall Street. -- ST PHOTO: ALPHONSUS CHERN
The Singapore stock market is likely to open weaker following the overnight rout on Wall Street. -- ST PHOTO: ALPHONSUS CHERN

SINGAPORE - The Singapore stock market is likely to open weaker following the overnight rout on Wall Street.

The Dow Jones Industrial Average sank by 324.37 points or 1.8 per cent to 17,508.62 while the tech-heavy Nasdaq Composite Index fell by 74.24 points or 1.6 per cent to 4,652.57.

Market watchers say investors were fleeing the market on renewed fears over political developments in eurozone and the relentless fall in crude oil prices.

The euro fell to a nine-year low against the US dollar after the Der Spiegel weekly reported that German government officials have accepted that Greece will exit from the eurozone if the left-wing Syriza party triump at the month-end polls. The party has said it will abandon the austerity measures that have been imposed on Greece by its creditors.

Meanwhile, global oil prices fell below US$50 (S$66.77) a barrel for the first time in more than five years. US crude slipped to US$49.95 briefly before rebounding slightly while London's Brent fell to US$52.66.

Dealers reckoned the hit on Singapore shares will be broad based and not confined to just those in the oil and gas industry like Keppel Corp and Sembcorp Marine.