Stocks hit record highs with rising rate cut hopes: Weekly Market Recap

It was great seeing more than 50 of you at our seminar this week. Thank you for making the time to join us.

One key message I shared during the event was this: with economic growth slowing and uncertainty rising, I find myself going back to the fundamentals. That means sticking to the principles of diversification and building a resilient portfolio that can ride out market volatility.

This principle doesn’t just apply to investing in general. It’s just as important when it comes to building a reliable income portfolio.

So this week, I’m sharing 10 different ways to earn passive income, from T-bills and fixed deposits to REITs and blue-chip stocks. 

With the T-bill yield falling in recent months and likely to trend lower if the US Fed moves ahead with rate cuts, it may be time to consider how we can make our savings work harder.

I also received a great question from one of our readers recently about whether the distributions from the NikkoAM StraitsTrading Asia ex-Japan REIT ETF are sustainable. 

After all, sustainability is key to any income strategy. So I decided to dig deeper into the numbers to find out what’s really driving the yield.

Now that we’re halfway through 2025, it might be a good time to pause and reflect: Are you on track with your financial goals? 

If your approach to investing is more passive than active, maybe this is your moment to reset  and make sure your money keeps working for you.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🏛 Middle East tensions eased 

What happened? 

There was a major de-escalation in the Middle East this week, as Iran and Israel agreed to a ceasefire. 

Importantly, the conflict did not cause any damage to key oil infrastructure or disrupt the vital Strait of Hormuz, helping to calm markets concerned about energy supply risks.

What does this mean?

Sentiment improved further as the White House announced a new trade deal with China and signaled that more agreements could be close behind.

Adding to the optimism, several Federal Reserve officials hinted that interest rate cuts could come sooner than expected. 

While futures markets still anticipate the Fed to hold rates steady in July, the odds of a rate cut have climbed from 14.5% at the end of last week to 22% by Friday, based on the CME FedWatch Tool.

Why should I care?

Investor sentiment got a strong lift this week, with easing geopolitical tensions in the Middle East and growing hopes for lower interest rates by the end of the year.

The S&P 500 and Nasdaq both hit fresh all-time highs, buoyed by the improved outlook.

Singapore stocks also rallied alongside global markets. SGX was one of the top gainers, jumping 7.1% on the back of positive momentum around upcoming IPOs. 

Singapore REITs saw a bounce as well, supported by growing expectations of US rate cuts ahead.

🚗  Moving This Week

• SGX listied six new Singapore Depository Receipts (SDRs) on Monday (Jun 23), comprising three Hong Kong (HK) mega-caps and three Thai blue-chip companies. The HK companies are Semiconductor Manufacturing International Corp (SMIC), e-commerce giant JD.com and PetroChina, while the Thai names are private hospital operator Bangkok Dusit Medical Services, food conglomerate CP Foods and Gulf Development. This takes the total SDR shelf to 21 securities on SGX. Read more about SMIC here.
• ST Engineering plans to sell its US-based construction equipment unit LeeBoy for US$290 million. The net proceeds of US$246 million will be used to pay down debt, saving interest costs of some US$9 million a year. Read more here.
• Acrophyte Hospitality Trust is considering temporarily suspending or reducing distributions, equity fundraising or a portfolio recalibration through brand repositioning, among other options, as part of its ongoing strategy review for the hospitality stapled group. This follows an announcement on May 30 when the managers said they were evaluating a range of options for the stapled group. Read more here.
• AEM has raised its revenue guidance for the first half of the financial year ending Jun 30 to between S$185 million and S$195 million, up from an earlier range of S$155 million to S$170 million. The upward revision follows an unexpected pull-in of orders into FY2025 from one of the group’s customers. Read more here.
• Elite UK REIT has completed the acquisition of three government infrastructure and workspaces in the UK. On June 10, the REIT announced that it entered into a conditional sale-and-purchase agreement to acquire the assets for GBP9.2 million ($15.95 million). Read more here.
• SATS’ chief financial officer (CFO) Manfred Seah will be stepping down with effect on 25 July. He will assume the role of special advisor with SATS and continue to lead group-wide projects upon his cessation as CFO.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Best Ways to Earn Passive Income in Singapore (2025)

Passive income can be a game-changer for your finances. We lay out various options to show how you can start earning passive income in Singapore.

🤓 What we're looking out for next week

• Tuesday, 1 July: Singapore Savings Bonds (SSB) application open
• Thursday, 3 July: 6-Month T-bill Auction, US jobs data

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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