Market

Market opens negative as US-China trade tensions loom

Updated : June 19, 2018 04:50 PM IST

The market is likely to open in the red as the rade tensions between the US and China loom.

Trump warned on Monday that Washington would impose a 10 percent tariff on $200 billion of Chinese goods after Beijing's decision to raise tariffs on $50 billion in US goods.

The Asian shares continue to trade lower for the second day.

Market opens negative as US-China trade tensions loom

The market has opened in the red with the BSE Sensex opening at 35,467 points and the NSE Nifty opening at 10,772 points. The market opened negative on account of the trade war tensions between the US and China. Dr Reddy's Labs, ICICI Bank, ONGC, HDFC Bank and Tata Motors are the top opening index gainers while HPCL, Vedanta, Hindalco, BPCL and Tata Steel are the top index losers.

(Above mentioned: Opening Bell update as of 09:16 am)

What was expected?

The market is likely to open in the red as the trade tensions between the US and China escalated on Tuesday.

Trump warned on Monday that Washington would impose a 10 percent tariff on $200 billion of Chinese goods after Beijing's decision to raise tariffs on $50 billion in US goods.

Trump said if China increases its tariffs again in response to the latest US move, "we will meet that action by pursuing additional tariffs on another $200 billion of goods."

The Asian shares continued to trade lower for the second day.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent.

Japan's Nikkei lost 0.45 percent in early trade, South Korea's KOSPI edged down 0.1 percent while Australian stocks added 0.3 percent.

The US market ended mixed as the S&P 500 futures were off 0.6 percent, pointing to another down day for Wall Street shares which slipped on Monday.

Indian market had a steady day of trade on Monday with the key indices seeing a rangebound move.

The Nifty closed with a fall of 18 points at 10,799.85 after trading above 10,800 during the day. Gains were led by the ICICI Bank and oil marketing companies, while Kotak Mahindra Bank, Infosys and HDFC Bank dragged.

The 30-stock index, the Sensex edged 74 points lower to 35,548, dragged by ICICI Bank, Tata Motors and Bajaj Auto.

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