Market

Market opens negative due to weak global cues as trade war intensifies

Updated : June 26, 2018 09:54 AM IST

The Asian markets extended a sell-off amid the escalating trade war between the US and other major economies.

The investors trade cautiously, away from riskier assets, lifting safe-haven US Treasuries and keeping the dollar on the defensive.

The market opened lower on Tuesday with the BSE Sensex opening at 35,355 points and the NSE Nifty opening at 10,734 points following global peers as the trade war intensifies.

(Above mentioned: Opening Bell update)

What was expected?

The market is likely to open negative on Tuesday due to weak global cues. The Asian markets extended a sell-off amid the escalating trade war between the US and other major economies.

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

Japan's Nikkei lost 0.8 percent, South Korea's KOSPI fell 0.55 percent and Australian stocks dropped 0.6 percent.

The investors are trading cautiously, away from riskier assets, lifting safe-haven US Treasuries and keeping the dollar on the defensive.

Equities in Asia took their cues from Wall Street, where the S&P 500 and Nasdaq suffered their steepest losses in more than two months overnight.

Wall Street opened lower on Monday where the benchmark index, Dow Jones, slipped 300 points in the session. The technology stocks were particularly hit and dragged the index.

A US government official on Sunday said the treasury department was drafting curbs that would block firms with at least 25 percent Chinese ownership from buying US companies with "industrially significant technology."

Besides the trade spat with China, the United States has recently upped the ante in a challenge to the European Union by threatening to impose tariffs on cars imported from the bloc.

The Indian market closed in the red on Monday. The BSE Sensex closed 219 points lower at 35,470, with ICICI Bank, L&T being the worst performers while the Nifty fell 59 points to 10,762.

Market opens negative due to weak global cues as trade war intensifies

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