Markets set to open lower due to rising global trade war concerns

The overhang of a trade war will remain on Indian markets which are likely to open lower. Going ahead, traders will keep a close eye on the rupee movement as rupee breached 72.50/$ mark. The SGX Nifty is trading lower by 23 points at 11,366.    
  
Stocks markets in Asia are trading on a mixed note on Tuesday as the US is imposing new tariffs on $200 bn worth of Chinese goods, thereby escalating its trade war with Beijing. The Japanese market, which was shut on Monday for a holiday, has climbed 1.06 per cent and China’s Shanghai Composite has gained 0.32 per cent, while Hong Kong’s Hang Seng has lost 0.70 per cent.  
  
Back home, Indian benchmark indices started the week on a feeble note and witnessed severe cut of over a per cent amid weak global cues as the news of further escalation of trade war between the US and China dampened investors' sentiments. After a gap-down start, the markets never looked in recovery mood as it remained under selling pressure throughout the day. In the end, Nifty slipped below its important psychological level of 11,400 and BSE Sensex ended below its crucial 37,600 mark. The broader indices showed some resilience with Nifty Small-cap ending above the neutral line, while Nifty Mid-cap lost 0.65 per cent. Most of the sectoral indices traded in line with the benchmark indices and closed in the red, but Nifty Realty and Nifty IT ended in the green.  
    
The US stocks ended Monday’s session with losses, with the tech-heavy Nasdaq recording it sharpest decline since July 27. The selling intensified in the market after President Donald Trump said an announcement on the trade with China would be made after the closing bell. The Dow Jones Industrial Average fell 93 points to close at 26,062; the S&P 500 slid 16 points to finish at 2,889 and the Nasdaq plunged 114 points to end at 7,896. On the US economic front, the Empire Manufacturing survey, which measures conditions in the greater New York region, fell more than expected.  
  
The European stocks ended Monday’s session with modest losses as investors turned cautious due to ongoing global trade concerns. The International Monetary Fund urged UK Prime Minister Theresa May to strike a deal with the European Union, cautioning that a ‘no deal’ Brexit would most likely be disorderly and carry substantial costs for the British economy. The DAX of Germany dipped 0.23 per cent; the CAC 40 of France fell 0.07 per cent and the UK’s FTSE 100 finished lower by 0.03 per cent.