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]
2) Fed liquidity: Treasury bill buying begins (a “technical” balance-sheet move)
In addition to rate policy, the Fed is also moving on liquidity management.
Reuters reported that the Fed will start “technical” Treasury bill buying to help manage market liquidity, with an initial pace of about $40 billion per month, beginning 12 December. [9]
The New York Fed’s operating-policy statement adds important detail: the Desk plans to publish monthly amounts and schedules, with the first schedule released 11 December and purchases starting 12 December, explicitly framed as maintaining an “ample” level of reserves and managing seasonal swings (including tax-related liquidity effects). [10]
Why Singapore investors should care:
Liquidity conditions influence global risk appetite, credit spreads, and the relative attractiveness of “yield” sectors — which can feed directly into sentiment for Singapore banks and REITs.
Central banks in focus: BoJ, ECB, and BoE loom over global rates
Monday’s Singapore open also kicks off a week with major central-bank decisions in the background:
- Bank of Japan (BoJ): expectations lean toward further tightening, which can strengthen the yen and affect global carry trades. Reuters noted expectations for a BoJ hike and flagged the central bank focus in the week ahead. [11]
- European Central Bank (ECB): markets are debating the longer-term path, with Reuters noting traders speculating about hikes in 2026 even as the ECB is expected to hold near-term. [12]
- Bank of England (BoE): Reuters said the BoE is expected to cut rates next week. [13]
For Singapore, these meetings matter mainly through global bond yields, the U.S. dollar’s direction, and risk sentiment — the key channels that often drive the STI day-to-day more than local macro headlines.
Singapore data calendar: trade numbers are the key domestic macro watch this week
In Singapore, the next major scheduled macro checkpoint is trade.
The Department of Statistics (SingStat) advance release calendar shows Singapore’s November 2025 “Merchandise Trade” release planned for 17 December 2025. [14]
Why it matters for the STI:
Trade momentum shapes the outlook for cyclicals and sentiment around the broader Singapore growth story — particularly in a market where global macro (China demand, electronics cycles, shipping/transport conditions) still filters into earnings expectations.
Key Singapore sectors and stocks to watch at the open
1) Singapore banks: DBS, OCBC, UOB — rates are still the headline driver
Banks remain central to the STI’s direction. Two moving pieces matter most into Monday:
- Global yields: Friday’s U.S. yield jump can support bank sentiment in the short term (through “higher-for-longer” thinking), but it can also raise concerns about volatility, funding costs and credit risk if moves are disorderly. [15]
- Policy expectations: the Fed has cut, but with visible disagreement inside the FOMC and investors watching delayed labour-market data next week. [16]
What to watch Monday: whether banks remain “leaders” at the open or whether traders rotate toward defensives after the U.S. tech-led pullback.
2) REITs and yield plays: strong 2025 performance, but rate volatility is the risk
Singapore REITs (S-REITs) have already had a strong 2025, supported by more constructive rate expectations and generally stable operating performance.
Business Times reported that as of 5 December, the iEdge S-REIT Index was up 9.3% year-to-date, with total returns (including distributions) at 14.7%, set for the best yearly performance since 2019. [17]
What to watch Monday:
REITs often react to the direction of bond yields, not just the level. If global yields stay jumpy, REIT leadership can become more selective even if the broader rate outlook remains supportive.
3) Property developers: analyst upgrades add fuel, but follow-through matters
A notable local catalyst: DBS Research turned more bullish on Singapore developers, lifting target prices across the sector (including CDL, UOL, and GuocoLand) on expectations tied to a lower interest rate environment, capital recycling and value-unlocking initiatives. [18]
This matters because property counters can become a “rate narrative trade” alongside REITs — but they also carry different risks (project pipeline, asset sales execution, and the consumer/property cycle).
4) Mapletree Pan Asia Commercial Trust (MPACT): portfolio reshaping in a weak China office market
In REIT-specific news, Reuters reported that Mapletree Pan Asia Commercial Trust is selling the Festival Walk Tower(office component) in Hong Kong for HK$1.96 billion (~$252 million), matching its latest valuation, with proceeds intended to reduce leverage. [19]
For Singapore REIT investors, the bigger read-through is how managers continue to reposition portfolios — especially where Greater China office exposure remains under pressure.
5) Energy and special situations: Sembcorp, Rex, and deal headlines
Corporate developments can also move individual names at the open.
Business Times highlighted that Sembcorp Industries confirmed it is in talks regarding a potential acquisition of Australia’s Alinta Energy, while stressing that no definitive transaction has been entered into. [20]
The same “stocks to watch” note flagged updates involving Rex International and other smaller names that could influence trading interest in specific counters. [21]
STI quarterly review: no constituent changes, but reserve list shifts can matter later in December
While not a “Monday morning” catalyst, it’s part of the broader December setup.
SGX’s STI quarterly review indicated:
- No change to STI constituents
- Reserve list changes (entering/exiting)
- Effective start of business on 22 December 2025 [22]
That timing can matter for liquidity and watchlists as the effective date approaches — particularly for traders monitoring potential index-related flows.
The Monday playbook: what could move Singapore equities in the first hour
If you’re looking at the open through a practical lens, these are the variables most likely to dominate early price action:
- U.S. risk sentiment: will Asia follow Wall Street’s tech-led slide, or treat it as contained? [23]
- Bond yields: if U.S. yields stay elevated, banks may hold up better than REITs; if yields soften, REITs and property can regain leadership quickly. [24]
- Oil direction: crude weakness can support transport names but can also weigh on “global growth” tone. [25]
- Week-ahead policy risk: BoJ/ECB/BoE expectations can impact FX and global duration markets, feeding into Singapore’s yield-sensitive sectors. [26]
- Singapore trade data countdown: with merchandise trade scheduled this week, positioning may start early. [27]
Bottom line before SGX opens on 15 December 2025
Singapore is opening the week at record levels — a position of strength — but Monday’s tone may be set as much in U.S. rates and global risk appetite as in local headlines.
The most important question for the first session of the week is whether investors treat Friday’s Wall Street decline as a contained tech/AI repricing, or the start of a broader risk-off rotation amplified by higher yields and central-bank uncertainty. [28]
Either way, with banks, REITs and property at the heart of the STI story, the market’s “rates narrative” remains the key lens for Monday — especially as the Fed begins a new round of liquidity operations and global central banks take centre stage in the days ahead. [29]
This article is for informational purposes only and is not investment advice.
References
1. www.straitstimes.com, 2. www.businesstimes.com.sg, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.ft.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.newyorkfed.org, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.singstat.gov.sg, 15. www.reuters.com, 16. www.businesstimes.com.sg, 17. www.businesstimes.com.sg, 18. www.businesstimes.com.sg, 19. www.reuters.com, 20. www.businesstimes.com.sg, 21. www.businesstimes.com.sg, 22. links.sgx.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.reuters.com, 26. www.reuters.com, 27. www.singstat.gov.sg, 28. www.reuters.com, 29. www.reuters.com
