Current situation
• Trump directed the US Trade Representative office to draw up a list of USD200bil worth of Chinese imports to subject to an additional 10% tariff. This would be on top of the initial 25% tariff on USD50bil worth of Chinese imports.

• China vows retaliation but may have limited 'firepower' because it imports USD130bil and exports much higher at USD505bil to the US.

• Asian equities fell on escalating trade war fear. Singapore stocks not spared given the country's status as a small-open economy much dependent on global trade flows.

• This unexpected negative turn of events led to a decline below our previous stated support level of 3385.