---
title: "SG Morning Brief｜STI Eases Off Record as Brent Tops $100"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/298516097.md"
description: "STI eased 0.43% to 5,777.28 on Wednesday, with banks cooling from records, while SIA prepares to seek tougher terms for Air India funding. Wall Street fell for a third day as Brent broke above US$100. PPI, Adobe earnings and Friday's CPI frame the Fed's next move."
datetime: "2026-09-10T00:10:09.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/298516097.md)
  - [en](https://longbridge.com/en/news/298516097.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/298516097.md)
generator: "portal-rs"
---

# SG Morning Brief｜STI Eases Off Record as Brent Tops $100

### Key Points

• The Straits Times Index closed 0.43% lower at 5,777.28 on Wednesday, easing from Tuesday's fresh high of 5,801.96, as the banks cooled from record levels.

• $Singapore Airlines (C6L.SG)$ will seek tougher terms — more management influence and governance rights — before any fresh capital injection into Air India, which is asking for about US$1.5 billion.

• Wall Street fell for a third straight session: the S&P 500 slipped 0.46% and the Dow 0.75% as Brent crude broke above US$100 and the 10-year Treasury yield hovered near 4.8%.

• Today: US August PPI (8.30pm SGT), then Adobe earnings after the close. Friday's August CPI is the final inflation read before the Sept 15-16 FOMC meeting.

### Singapore Open

The STI closed at 5,777.28 on Wednesday, down 24.68 points or 0.43%, stepping back from Tuesday's fresh high of 5,801.96. The pullback tracked a global risk-off mood as Brent pushed above US$100 a barrel and rekindled inflation worries. The index has still delivered a year-to-date gain above 20%, powered by a banking rally.

The three banks — which together carry more than half the STI's weight — have been hovering near records: $DBS (D05.SG)$ around S$76, $OCBC (O39.SG)$ near S$27 and $UOB (U11.SG)$ around S$42. Through early August, OCBC led with a roughly 50% year-to-date gain, ahead of DBS (+35.8%) and UOB (+25.2%). If the oil-driven inflation scare deepens, expect profit-taking to hit the highest-flying names first.

The standout local story is $Singapore Airlines (C6L.SG)$. SIA plans to seek greater influence over management and stronger governance rights before approving a fresh capital injection into loss-making Air India, which is seeking about US$1.5 billion from owners Tata Sons and SIA, Reuters reported. SIA owns 25.1% of Air India and stresses the investment is funded internally — it held S$10.48 billion in cash and S$3.24 billion in undrawn credit lines at end-June. In FY2025/26 the carrier recognised S$945.2 million as its share of Air India's losses, so any new terms will be closely scrutinised by shareholders.

### Singapore Macro

The domestic backdrop is unusually strong, which is why the STI can absorb a modest dip. MTI upgraded 2026 GDP growth to 4.5%-5.5% (from 2%-4%) after a 5.9% second quarter, and the MAS survey of professional forecasters now sees 5% growth for the year. But inflation is the wildcard: MAS unexpectedly tightened policy in late July and flagged that core inflation would step up and stay elevated into early 2027, partly because electricity and gas prices rise with energy costs.

That is the transmission to watch for SGX investors. With Brent above US$100, imported energy costs feed Singapore's electricity and food inflation; if core inflation — forecast at 1.9% for 2026 — drifts higher, MAS has less room to ease, and a firmer Singapore dollar plus higher-for-longer rates squeeze REIT financing costs while shaping bank net interest margins. The September survey also flagged two downside risks: a Middle East escalation and an AI-bubble unwind — both in play this week.

### US Overnight

US equities fell for a third straight session on Wednesday. The S&P 500 closed 0.46% lower, the Nasdaq 100 slipped 0.29% and the Dow dropped 0.75%. The driver was energy: Brent rose about 1.4% to around US$100.7 a barrel, with WTI near US$95-96, as US-Iran tensions around the Strait of Hormuz escalated and US fuel prices hit record highs. The 10-year Treasury yield hovered near 4.8%, and with Fed Chair Kevin Warsh signalling the central bank will act if inflation stays too hot, markets are pricing a genuine possibility of a hike at the Sept 15-16 FOMC meeting.

**Key Movers:** $Grab (GRAB.US)$ fell 6.46% to US$3.04, among the heaviest decliners in active trading, as the risk-off, higher-for-longer mood hit high-beta Southeast Asia tech. Energy bucked the trend — $Chevron (CVX.US)$ rose about 1.9% and $Occidental Petroleum (OXY.US)$ about 1.1% intraday as crude climbed. $Apple (AAPL.US)$ slipped roughly 0.3% after unveiling its first foldable iPhone, the iPhone Duo, a classic 'sell the news' response. Separately, $Qualcomm (QCOM.US)$ and $Amazon (AMZN.US)$ announced a multi-generational AI data-centre chip partnership, while $Nvidia (NVDA.US)$ management speaks at the Goldman Sachs Communacopia conference today — a potential catalyst for the chip complex.

### Asia Pre-Market

US equity futures were little changed in early Asia trade — S&P 500 futures roughly flat and Nasdaq 100 futures up about 0.2% — as traders held fire ahead of today's PPI. WTI held near US$95-96 a barrel and Brent above US$100. Gold sat around US$4,400-4,445 an ounce, supported by Middle East risk and central-bank buying (central banks added a net 289 tonnes in Q2, with China buying for a 22nd straight month). Bitcoin traded near US$80,000. For the SGX open, the key signal is oil: if crude extends higher through the Asian session, energy-linked counters and inflation-sensitive banks and REITs are likely to diverge sharply.

### Today's US Earnings and Economic Calendar

August PPI lands at 8.30pm SGT (8.30am ET), with economists looking for a 0.4% monthly rise in headline PPI and 0.3% core — an acceleration that would reinforce the Fed's inflation worries. Jobless claims (8.30pm SGT) and existing home sales (10pm SGT) round out the day. Friday's August CPI is the main event, with headline CPI seen at 3.4% year-on-year and core at 2.4%.

**Earnings Spotlight: $Adobe (ADBE.US)$** reports fiscal Q3 results after the US close (early Friday Singapore time). Consensus is roughly US$6.09 in adjusted EPS on about US$6.7 billion in revenue, in line with management's guidance of US$6.05-US$6.10 EPS and US$6.67-US$6.72 billion revenue. The watch item is AI monetisation — Acrobat AI Assistant ARR nearly tripled last quarter and Acrobat/Express monthly active users topped 850 million — plus whether full-year guidance holds up. With PPI today and CPI Friday, Adobe reports in the middle of the two prints that will frame the Fed's next move.

### One More Thing

The question for the rest of the week is whether oil is a supply shock the Fed can look through, or the start of a broader repricing. A useful framework: watch Friday's core CPI. If it holds near 0.2% month-on-month despite the energy spike, the Fed can plausibly stay patient and this STI pullback is more likely a rotation into energy and rate beneficiaries than a top. If oil bleeds into core inflation, the Sept 15-16 FOMC becomes a live hike risk — and Singapore's high-flying banks and REITs, priced for a soft landing and eventual easing, have further to give back.

*Sources: SGX Straits Times Index; Reuters; MAS Monetary Policy Statement (July 2026); AlphaStreet.*

*This briefing is compiled with AI assistance from market data and wire reports, and reviewed by the Longbridge editorial team before publication.*

*This briefing is for informational purposes only and does not constitute investment advice.*

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**