Positive start likely as US-China agree to restart talks

Monday morning promises a smiling start for the Indian markets after the US and China agreed to restart the trade talks at the G20 summit. Also, the US will not impose additional tariffs on Chinese imports for the time being. At the time of writing, SGX Nifty was marginally up by 18 points at 11,856 level. During the day, the auto stocks will remain in the limelight as the monthly auto sales figures will start trickling in. Also, traders will keep an eye on Nikkei Manufacturing PMI for the month June, which will be released today.

Asian markets are buoyant on the first trading session of July following US President Donald Trump and China’s President Xi agreeing to restart trade talks and not to impose additional tariffs on each other’s products. China will resume import of US agricultural products and, as a gesture, Trump has also eased restrictions on Chinese telecom major, Huawei. The Japanese stock index Nikkei 225 has jumped 1.80 per cent and China’s Shanghai Composite has climbed 1.98 per cent.

Back home, the markets ended the final trading session of the week with a cut of about half a per cent as selling pressure in the last hour trading dragged indices to close near the day’s low. After opening the session on a flat note, markets were seen trading back and forth on the either side for major part of the trading session. However, in the last hour, bears took control and dragged the indices lower. The broader market indices ended the session in the red, with Nifty Midcap and Small losing 0.36 per cent and 0.20 per cent, respectively. A majority of the sectoral indices traded in tandem with the benchmarks and closed lower with Nifty Metal and Nifty Private Bank being the top losers, while Nifty PSU Bank, Nifty Realty and Nifty FMCG ending in in green.

The US equity markets kicked off the day on the positive terrain, but soon the markets turned volatile ahead of the much anticipated meeting between the US President Donald Trump and the Chinese President Xi Jinping at the G-20 summit. On the economic front, traders digested mixed data. But, going into the weekend, all three of the major indices ended in the green, with the Dow surging 0.3 per cent, the Nasdaq gaining 0.5 per cent and the S&P 500 advancing 0.6 per cent.  

The European markets rallied on Friday with Germany’s DAX surging 1.04 per cent followed by France’s CAC 40 and UK’s FTSE 100 adding 0.84 per cent and 0.31 per cent, respectively.