US equities rose on light volume ahead of Wednesday's anticipated tapering decision by the FOMC.
The S&P 500 finished above 1,700 for the first time since Aug, helped in part by Microsoft, which increased its quarterly dividend by 22%. The Dow had 19 of its components in positive territory with Intel (+1.5%) and Alcoa (+2.0%) amongst the leaders. Composite volume on the NYSE approached 2.8b (3.1b previously).
WTI Crude for Oct fell US$1.17, or 1.1%, to end at US$105.42/barrel while Nov Brent declined by US$1.88, or 1.7%, to settle at US$108.19/barrel. This was the third consecutive session of declines for crude.
Gold for Dec delivery lost US$8.40, or 0.6%, to end at US$1,309.40/ounce while Dec Silver shed 23 cents, or 1%, to end at US$21.78/ounce.
Implications for Singapore
With US stocks maintaining their strong run overnight, this could cue the local bourse to a positive start this morning.
As a recap, the STI traded to a flat close yesterday, barely staying above the 3180 immediate obstacle.
But with today's tone likely to remain more upside biased, we could see the index attempting to break away from this level in the direction of the next resistance at the 3220 region.
On the downside, 3130 is still the firmly established resistance-turned-support, followed by the next base at the 3070 support.

Shares in Singapore ended flat on Tuesday, ahead of the US Federal Reserve's policy meeting.
The Straits Times Index rose 1.44 points, or 0.05%, to end at 3,180.92.Here are some factors and company news that could affect the market this Wednesday morning:
Rex International Holding said its 65%indirectly owned subsidiary Lime Petroleum Norway AS, will receive 10% stakes in each of two new exploratory licences in Norway from North Energy ASA. This is a result of the co-operation agreement between Lime and North Energy. Rex said no consideration is needed to be paid for the transfer of the 10% stakes, which is pending regulatory approval.
China Aviation Oil (Singapore), Asia's top jet fuel buyer, plans to move into other oil products to limit its dependence on aviation fuel as growth in top consumer China slows, a senior company executive said.
Property stocks: Singapore's jump in private home sales last month was only a temporary reprieve for developers as the government's cooling measures take root and mortgage rates begin to rise. The city's housing sales climbed 54% to 742 in August from July, when they fell to 482, the lowest in almost four years, according to government data. With nine rounds of cooling measures since mid-2009, the increase will be short- lived, according to Mizuho Bank Ltd. and UOB Kay Hian Pte. Monthly sales averaged about 1,700 units in the first six months of the year.
Singapore's non-oil domestic exports (NODX) contracted unexpectedly in August, falling 6.2% on-year following a 1.9% drop in July. August's fall is the seventh straight month of decline, according to figures from trade agency International Enterprise Singapore (IE Singapore).