The situation in the Middle East shows no signs of easing, pushing global oil prices higher continuously. Coupled with unexpected signs of cooling in the U.S. job market, Wall Street's stock market fell across the board last Friday (March 6).
Under the uncertainty caused by the U.S.-Iran conflict, the Singapore stock market declined last week. As of last Friday's close, the Straits Times Index stood at 4848.25 points, down a total of 54.56 points or 1.11% for the week.
Market risk aversion has risen again, mainly due to the significant increase in oil prices. U.S. crude oil futures surged over 12% last Friday, breaking above $90 per barrel, while international Brent crude oil also rose about 8.5% to around $92.
According to a report released by the U.S. Department of Labor last Friday report, the U.S. economy lost 92,000 jobs in January, while economists had previously expected an increase of 59,000. The local unemployment rate is 4.4%, higher than the previously expected 4.3%.
<h3>Rising Oil Prices Bring Inflation but Economic Slowdown Puts the Fed in a Policy Dilemma</h3>
In an interview with Lianhe Zaobao, Phillip Securities wealth manager Huang Jun Kai pointed out that the market is facing two simultaneous trends. &#34;Weak employment means the U.S. economy is slowing down, while rising oil prices indicate that inflation is increasing. This combination may lead to a situation where growth slows and inflation rises simultaneously, which also limits policy space significantly.&#34;
He noted that because the Federal Reserve is in this policy dilemma, market uncertainty has significantly increased, leading to noticeable volatility.
Morgan Stanley's Chief U.S. Economist Michael Gapen believes that if oil prices continue to rise slightly, the impact on overall U.S. inflation will be temporary, and the effect on core U.S. inflation will be minimal.
<h4>Further Reading</h4>
[Trump's Desired &#34;Three Low&#34; Situation Reversed, Oil Prices and Dollar Rise Together 
 
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Oil prices break $90, market warns may soon break $100
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&#34;The Federal Reserve can ignore these increases. However, due to inflation being persistently above target levels, even moderate oil price pressures may delay interest rate cuts.&#34;
Huang Jun Kai pointed out that the performance logic of the Hang Seng Index is different from that of the S&amp;P 500 due to significant differences in industry structure, and the impact of oil price shocks on it is also different.
&#34;As investors seek safer assets, local bank stocks may be favored. Since this has a very high weight in the Hang Seng Index, it may actually drive stronger index performance.&#34;
He believes this is because market fundamentals are beginning to reassert their dominance over trends, potentially affecting or surpassing the previously AI-driven sentiment. &#34;We may be approaching a rare situation where the Hang Seng Index continues to rise while the S&amp;P 500 declines, resulting in a reverse trend between the two.&#34;
<h3>Advanced Systems Automation faces ongoing turmoil, former sponsor demands fees</h3>
In individual stock news, Advanced Systems Automation announced last Friday that it has received a lawyer's letter from its former continuous sponsor ZICO Capital, demanding payment of over 620,000 SGD in advisory fees and requiring the company to make payment within seven days.
This claim dispute arose shortly after Advanced Systems Automation changed its continuous sponsor. The group has also seen several corporate actions in recent weeks, including the collapse of its acquisition plan for its former parent company ASTI Holdings, as well as inquiries from the Securities Investors Association (SIAS) regarding the acquisition plan.
The performance document released on the same day showed that Advanced Systems Automation recorded a net loss of 14.42 million SGD for the second half of the fiscal year ending December 31 last year, far exceeding the 5.19 million SGD loss in the same period two years ago. The company's stock closed at 0.005 SGD on Friday, up 25%

Oil prices continue to rise, and global market risk aversion is increasing. The cooling of the U.S. job market has led to a decline in Wall Street stock markets. The Straits Times Index fell by 1.11%. Oil prices surged, with crude oil futures breaking above $90 per barrel, and Brent crude around $92. Analysts point out that the rise in oil prices coexists with weak employment, which may lead to a slowdown in economic growth and rising inflation, increasing market uncertainty. Morgan Stanley believes that a slight increase in oil prices has a limited impact on overall inflation in the United States

Zaobao

SPDR Energy Select

iShares US Oil & Gas Expl & Prod

SPDR O&G Ex & Prd

Us Brent Oil

VanEck Oil Services ETF

United States Oil Fund LP

ISHRS S&P Glb Engy

FTSE Straits Times Index

Oil prices soar Analysis: Investors seek safe assets, the sea index may turn to rise | Lianhe Zaobao