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Sensex, Nifty Set To Open Lower As Trade Fears Linger

Indian shares may open lower on Friday, mirroring weak global cues on worries that businesses can get hit in a scenario of increasing trade fictions. Traders will also keep an eye on oil price movements as the OPEC meeting gets underway.

Meanwhile, market regulator SEBI on Thursday announced some major changes in rules governing fund-raising, to provide flexibility to issuers and to boost capital formation. The regulator tweaked norms governing stock exchanges, clearing corporations and depositories.

Benchmark indexes Sensex and the Nifty fell modestly on Thursday while the rupee ended up by 10 paise at 67.98 per dollar after RBI's June meeting minutes gave no indication of rate action going forward.

Asian stock markets are reeling under selling pressure this morning on worries over global trade after China's commerce ministry spokesman?Gao?Feng?accused the U.S. of using bullying tactics and blackmail in threatening to impose tariffs on hundreds of billions of dollars of Chinese imports.

Separately, U.S. Commerce Secretary Wilbur Ross said on Thursday the end goal of the trade negotiations is to reduce high trade barriers and tariffs for U.S. firms.

The dollar fell from an 11-month high against a basket of currencies as U.S. bond yields drifted lower and EU's tit-for-tat tariffs on U.S. goods come into effect today. Oil prices rose more than 1 percent in Asian trade ahead of the OPEC meeting outcome.

U.S. stocks fell overnight as oil prices slid and worries over U.S.-China trade spat kept investors nervous. Media reports suggesting that China could hit back at U.S. firms listed on the Dow Jones Industrial Average also weighed on markets.

The Dow dropped 0.8 percent to extend its losing streak to the eighth straight session and the tech-heavy Nasdaq Composite fell 0.9 percent from a record closing high set the previous day while the S&P 500 shed 0.6 percent.

European stocks ended Thursday's session lower as Daimler issued a profit warning and the Bank of England kept interest rates unchanged, but raised the chances of an August rate rise.

The pan-European Stoxx 600 index gave up 0.9 percent amid selling across the board. The German DAX tumbled 1.4 percent, France's CAC 40 index declined 1.1 percent and the U.K.'s FTSE 100 shed 0.9 percent.

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