On the Economy

US Market Review

Wall Street extends slide; Dow drops 200

"Wall Street extended its steep decline Friday, propelling the Dow Jones industrials down more than 500 points over two days after investors gave in to mounting concerns that borrowing costs would climb for both companies and homeowners. It was the worst week for the Dow and the Standard & Poor's 500 index in five years.

Investors cast aside a stronger-than-expected read on the economy and maintained negative sentiment that dominated Thursday when the market shuddered amid worries over the U.S. mortgage and corporate lending markets. Investors globally took flight from equities, shifting cash into safer investments in Treasurys.
The pullback Thursday and Friday wiped out $526.1 million in shareholder wealth from the stocks in the Standard & Poor's 500 index.

Although the market has often rebounded after a steep drop -- and has done so in recent weeks -- investors appeared unable Friday to set aside their concerns about a weakening housing market and tightening credit.

A Commerce Department report that the U.S. gross domestic product rose at a better-than-expected pace in the second quarter appeared to do little to quell investors' unease Friday. GDP increased at a 3.4 percent annual rate, indicated that the drag from the housing sector lessened. Economists had expected an increase of 3.3 percent."

SIAS Research

Economy of Singapore

Singapore shares are expected to open lower as investors take their cue from further losses on Wall Street Friday amid mounting credit concerns in the US .

CIMB-GK Research said after a long period of gains, technically, global equities markets have been due for a solid correction.

Investors are likely to focus on companies that will release results this week, although strong numbers could still be overshadowed by the current weak market conditions. Among blue chip companies set to release results, are COSCO Corp Singapore , CapitaLand , Singapore Airlines, SembCorp Marine, and Venture Corp.