FX.co ★ Singapore Stocks Plunge as Trade Tensions Escalate

The Straits Times Index (STI) dropped by 78 points, or 2.2%, settling at 3,500 during early trading on Friday. This decline interrupted a previous 5.4% gain achieved on the previous day. The downturn was largely influenced by a negative session on Wall Street, exacerbated by rising trade tensions between the United States and China. Concerns heightened among traders regarding the US economy following Washington's announcement of increased tariffs on China, now at 145%. Simultaneously, discouraging data from China intensified worries, with consumer prices experiencing a second consecutive monthly decline and producer prices marking their most significant plunge in four months, reflective of subdued domestic demand. In Singapore, market participants are turning their attention to the upcoming Monetary Authority of Singapore meeting scheduled for next Monday, anticipating potential policy easing due to growing recession fears sparked by US tariffs. The sectors bearing the brunt of this downturn were retail trade, transportation, finance, and technology services. Significant decliners included SATS with a 6.0% decrease, DBS Group dropping 4.1%, OCBC down by 3.6%, Venture Corp falling 3.0%, and Seatrium decreasing by 2.9%.