Disappointment over US May jobs data, renewed jitters over risk of European sovereign debt default set to weigh on Singapore shares after bruising US stocks on Friday, according to Dow Jones.

20.4% spike in CBOE Volatility Index points to increased fear among investors. Support for STI tipped at last week’s low of 2,710; closed +0.5% at 2,806.51 Friday.

“The fear over the European debt crisis can come back to haunt us because the problems have not gone away,” says Daphne Roth, head of Asia equity research at ABN Amro Private Bank; “take some money out and come back after the World Cup football tournament. There’s no need to chase the market and face sleepless nights.”

Among STI components, cyclical stocks like NOL (N03.SG), Noble Group (N21.SG), Olam (O32.SG), banks may lead decline, while selling pressure deemed less on defensive plays like ComfortDelgro (C52.SG), SMRT (S53.SG), Starhub (CC3.SG).