Daily Markets Briefing: STI down 0.16%

Wall Street's optimism on US-China trade talks could boost local sentiment.

The Straits Times Index (STI) ended 5.12 or 0.16% lower at 3,201.15.

The top active stocks were DBS, which dipped 0.08%, Singtel, which declined 0.66%, OCBC, which slipped 0.35%, UOB, which remained unchanged, and Jardine Matheson Holdings (JMH) with a 0.39% fall.

The FTSE Mid Cap dropped 1.67% whilst the FTSE Small Cap grew 0.43%.

According to OCBC Investment Research (OIR), US stock indexes closed higher on Tuesday after lawmakers reached a tentative deal to prevent a government shutdown. Optimism over a potential trade deal between US and China also boosted sentiment.

Ten out of eleven S&P 500 industries ended higher, led by Materials (2.25%) and Consumer Discretionary (1.66%). Real Estate (-0.7%) led the decline.

"The optimism in Wall Street overnight could be extended to the local markets as trade talks are set to resume in Beijing," OIR said.