Singapore shares end flat amid Fed pressure and ahead of Nvidia earnings release

SINGAPORE – Investors in Singapore and across the region took a cagey approach on Aug 27 ahead of uncertainty around the US Federal Reserve and a key earnings report from tech giant Nvidia.

Despite the cautious mood, the Straits Times Index (STI) inched up 0.04 per cent or 1.86 points to 4,245.57. Losers thumped gainers 304 to 211 on middling trade of 1.3 billion securities worth $1.4 billion.

Investor nerves are on edge over an attempt by US President Donald Trump to remove US Federal Reserve governor Lisa Cook.

Nvidia, which accounts for roughly 8 per cent of the S&P 500, is expected to move markets with its quarterly results, due late on Aug 27.

Swissquote Bank senior analyst Ipek Ozkardeskaya, noting that markets fear Mr Trump will tilt Fed decision-making in his favour, said: “Inappropriate rate cuts could fuel inflation and push long-term yields higher, especially against the backdrop of soaring US debt.”

Nvidia’s results could prove decisive for markets, she added. The chipmaker is expected to post about US$46 billion (S$59 billion) in revenue. “Even if Nvidia beats expectations, investors might use strength as an opportunity to take profits, which could accelerate a correction.”

Wall Street was unmoved by the Fed dramas, with key indexes rising. The S&P 500 and the Nasdaq each added 0.4 per cent; Dow Industrials advanced 0.3 per cent.

Regional markets were mixed, however. Japan’s Nikkei 225, South Korea’s Kospi and the ASX 200 in Australia each rose 0.3 per cent. Malaysian stocks gained 0.4 per cent while Hong Kong’s Hang Seng slid 1.3 per cent.

The STI’s top gainer was conglomerate Jardine Matheson, up 3.3 per cent to US$59.84, while resort operator Genting Singapore was the biggest loser, down 2.6 per cent to 73.5 cents.

The banks were mixed: DBS Bank gained 0.3 per cent to $50.17, UOB fell 0.3 per cent to $35.09, and OCBC Bank was down 0.2 per cent at $16.66.

THE BUSINESS TIMES