Some more downslide today

The stock markets across the world have cracked impulsively and the biggest thorn in the flesh, which resulted in this impulsive crack, is the comments from the US President, Donald Trump, that indicated that a trade deal with China may not be reached until next year. This disappointing delay comes right after an announcement that the US President is likely to reinstate tariffs on steel from Argentina and Brazil. Threats of increased tariffs on French goods, in retaliation for French tax aimed at US big tech, also influenced negatively.

The global weakness will inevitably spill on the Indian shores as well. The SGX Nifty, which is currently trading almost 42 points below its yesterdays close, is already reflecting it. Today, the Indian markets will solely be mirroring the global sentiments and that, at present, does not look good.

On the Asian side, concerns of delay in the trade deal between the US and China are looming large as Trump suggested that the deal may not be reached until next year. It is a sea of red on Wednesday, with the Japanese Nikkei down by a huge 286 points, Hong Kong’s Hang Seng declining 1.08 per cent, and China’s Shanghai Composite shedding 0.33 per cent.
 
Back home, the markets were under pressure on Tuesday due to weak global cues. The key benchmark indices traded with a negative bias throughout the day and ended lower by 0.31 per cent (Sensex) and 0.45 per cent (Nifty). The broader market indices, Nifty Midcap and Smallcap, too, ended lower by 1.09 and 0.71 per cent, respectively. On sectoral perspective, barring Nifty Realty and Nifty IT, all other indices exhibited selling pressure, with Nifty PSU Bank being the top decliner, followed by Nifty Metal and Nifty Media.
 
As for global happenings, all three main US stocks indexes extended losses for the third day straight on Tuesday after the US President Donald Trump said that a trade deal with China could wait until after the 2020 election. In the end, Dow lost about a per cent, the S&P 500 dropped 0.7 per cent, and the NASDAQ fell 0.6 per cent. The majority of the European markets also ended the session in negative terrain amid the flare-up in trade tensions. Further, the US President threatened to impose hefty tariffs on French goods in retaliation for French taxes directed towards US big tech.