Singapore shares may retreat on weaker-than-expected US economic data, which weigh on US stocks overnight, according to Dow Jones.

STI at risk of slipping below psychologically important 3,000 mark after holding above that level for last 2 sessions. Initial support at 2,979 (July 30 low), with any upside expected to be capped at year-to-date intraday high of 3,043 set yesterday, when index ends down 0.3% at 3,014.77.

“People will continue to get mixed signals on the economic front from time to time. Earnings meanwhile are still looking fine, but the question now is how well companies cope for the rest of the year,” says local house trader.

Among blue chips, Sembcorp Marine (S51.SG), CapitaMalls Asia (JS8.SG), ST Engineering (S63.SG) may be closely watched after releasing 2Q10 results; SembMarine ends down 1.0% at $4.04, CapitaMalls flat at $2.16, ST Engineering flat at $3.26.