STI falls 1.2% as trade war fears resurface

ONE day up, the next day down. What's clear as forewarned is that the stock market is likely to rise and fall in tandem with US interest rate hike speculation and trade rhetoric. Investors, who have been phlegmatic about the drama in the White House, can no longer ignore it.

Singapore's stock market, along with its Asian peers, were jolted on Wednesday by news that US President Donald Trump's top economic adviser Gary Cohn had resigned. The resignation of Mr Cohn, nicknamed "Globalist Gary", rekindled concerns over Mr Trump's decision to impose punishing tariffs of 25 per cent on steel and 10 per cent on aluminium as part of his "America First" agenda.

Mr Cohn was the last powerful voice in the Oval Office arguing against the tariffs and against Mr Trump's threats to break up the North American Free Trade Agreement. His departure is a sign of defeat for the pro-free trade crowd.