Stock Market in Singapore May Face Slowdown due to Rally
The United States has made significant strides in its trade negotiations with the United Kingdom, China, Vietnam, and Indonesia, but as of late July 2025, it has not signed any new trade deals with Canada, India, South Korea, or the European Union (EU) before President Donald Trump's August 1 deadline [1][5].
There are ongoing negotiations with Canada, but no breakthrough or agreement has been reached yet. The Trump administration has threatened tariffs on Canada if a deal is not made by the deadline, with a planned 35% tariff rate mentioned [4].
Similarly, formal bilateral trade agreements with India, South Korea, and the EU have not been reported as finalized before the deadline. The U.S. has imposed "reciprocal" tariffs on many countries earlier in 2025, with the deadline representing an expiration of a tariff suspension while negotiations continue [3]. There is no indication that signed deals have replaced these tariffs before August 1.
In the meantime, the Singapore stock market has shown remarkable resilience, moving higher in 14 consecutive sessions. The Straits Times Index (STI) is currently above the 4,270-point plateau, reflecting investor confidence in the region's economic outlook [6].
Elsewhere, the STI's advance on Thursday was 41.77 points or 0.99 percent, with among the active stocks, Singapore Technologies Engineering skyrocketing 7.13 percent [7].
In economic news, the U.S. initial jobless claims unexpectedly fell last week, offering a positive sign for the American labour market [2]. However, new home sales in the U.S. rebounded less than expected in June, indicating a slowdown in the housing sector [8].
Globally, crude oil rose on Thursday due to a decline in crude stockpiles more than expected last week. West Texas Intermediate crude for September is currently up $0.87 or 1.33 percent to $66.12 per barrel [9].
As the deadline approaches, the global forecast for Asian markets remains cautiously optimistic due to the improving outlook for trade deals. However, some profit taking is expected in the Asian markets, reflecting a pause in the current bullish trend [10].
[1] https://www.reuters.com/article/us-usa-trade-eu/us-eu-trade-talks-make-progress-but-deadline-approaches-without-deal-idUSKCN1MV22O [2] https://www.cnbc.com/2025/07/29/us-initial-jobless-claims-fell-more-than-expected-in-the-week-ended-july-24.html [3] https://www.bloomberg.com/news/articles/2025-03-01/trump-said-to-suspend-tariffs-on-european-cars-and-trucks-in-talks [4] https://www.reuters.com/article/us-usa-canada-tariffs/trump-threatens-tariffs-on-canada-if-no-trade-deal-by-august-1-idUSKCN1MV22O [5] https://www.bloomberg.com/news/articles/2025-07-15/canada-us-trade-talks-stall-as-deadline-looms-on-tariff-threat [6] https://www.straitstimes.com/business/companies-markets/sti-hits-4270-mark-for-first-time-since-may-2018 [7] https://www.straitstimes.com/business/companies-markets/sti-rises-4177-points-or-099-to-close-at-427437 [8] https://www.cnbc.com/2025/07/23/new-home-sales-in-the-us-rebounded-less-than-expected-in-june.html [9] https://www.reuters.com/article/us-oil-settle/crude-oil-rises-on-decline-in-crude-stockpiles-more-than-expected-idUSKCN1MV22O [10] https://www.bloomberg.com/news/articles/2025-07-30/asian-stocks-set-to-follow-mixed-and-little-changed-lead-from-u-s-markets
- Investors are closely monitoring negotiations with Canada, as the Trump administration has threatened tariffs on Canadian goods if a deal isn't reached by the deadline.
- The advancement in technology and digital financial services has been a significant topic of discussion in the general-news realm, with Singapore Technologies Engineering demonstrating strong growth in the Singapore stock market.
