SINGAPORE (Nov 26): Singapore’s stock market is unlikely to throw up much of a fuss if trade talks fail between the world’s two largest economies, according to Oversea-Chinese Banking Corp.

Even in the bear case where U.S.-China negotiations produce nothing, the Straits Times index will slip less than 1% over the next year, said Carmen Lee, OCBC’s head of investment research. Cheap valuations plus a recovery in earnings and dividends will keep the downside in check, she said.

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