Singapore's non-oil domestic exports fell 3.4 percent on the year in October after falling 13.2 percent in September and increased 3.4 percent on the month after a previous increase of 11.1 percent. Imports fell 2.3 percent on the year in October after falling 12.2 percent in September and rose 4.1 percent on the month after an increase of 2.0 percent previously.

Exports of electronics products fell 5.6 percent on the year after dropping 11.6 percent previously, while exports of non-electronic products fell 2.7 percent after a previous decline of 13.7 percent. The smaller fall in headline exports was driven by stronger growth in exports to China, a rebound in exports to the European Union, and a smaller year-over-year decline in exports to Japan, offset by a fall in exports to the United States and weaker growth in exports to Hong Kong.

Singapore publishes monthly data (both in nominal and real terms) for the current and previous two months, cumulative-to-date data on imports and exports by country of origin and destination, as well as monthly seasonally adjusted trade data. Imports refer to goods brought into Singapore irrespective of whether they are for consumption, for processing, for use in manufacturing, or for subsequent re-shipment to other countries/areas. Exports refer to goods brought out of Singapore. They comprise domestic exports and re-exports. Data are also disseminated on imports broken down by country of origin and domestic exports and re-exports broken down by country of destination.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they also affect currency values in foreign exchange markets. However, the foreign exchange impact is muted here given that Singapore’s currency is managed by the central bank.

Imports indicate demand for foreign goods and services in the local economy. Exports show the demand for local goods in countries overseas. Movements in the trade balance directly affect GDP growth because of the Singapore’s dependence on trade. Stronger exports are bullish for corporate earnings and the stock market. The bond market is also sensitive to the risk of importing inflation.

This report also gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.