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Sensex, Nifty Seen Lower On Trade Worries

Indian shares may open a tad lower on Monday, tracking weak global markets after U.S. President Donald Trump signaled his intention to impose tariffs on additional $267 billion, in addition to the proposed 25 percent duty to be levied on $200 billion of Chinese goods.

Despite opposition from American companies, the Trump administration is preparing a list of Chinese goods of $200 billion that would be subjected with additional tariff.

China's Commerce Ministry has already warned it would be forced to roll out necessary retaliatory measures if the U.S. imposes any new tariffs.

Closer home, trading this week may be influenced by oil price movements, the direction of rupee and macro-economic reports on industrial output and consumer inflation due on September 12.

The rupee may remain under selling pressure as investors brace for another increase in U.S. interest rates before the end of the month.

Benchmark indexes Sensex and the Nifty fell around 0.7 percent and 0.8 percent, respectively last week on concerns about rising oil prices and a weakening rupee, which breached the 72 per dollar-mark for the first time during the week.

Asian markets started the week in the red as trade worries offset upbeat GDP data from Japan. China's trade surplus with the U.S. widened to a record in August, customs data showed on Saturday, adding to the tensions.

The dollar held largely steady against a basket of currencies while oil prices inched up in Asian trade after three straight days of losses.

U.S. stocks fluctuated before closing modestly lower on Friday after President Trump suggested he might impose tariffs on virtually all imports from China. In addition, a strong jobs report for August bolstered the prospects for further rate hikes.

The Dow and the Nasdaq Composite slid around 0.3 percent while the S&P 500 inched down 0.2 percent.

European markets ended Friday's session mixed on tariff concerns as a public comment period ended on new U.S. tariffs against China.

The pan-European Stoxx Europe 600 index inched up 0.1 percent. The German DAX closed marginally higher and France's CAC 40 index edged up by 0.2 percent while the U.K.'s FTSE 100 shed 0.6 percent.

by RTTNews Staff Writer

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