Indian shares look set to open lower on Monday, tracking weak Asian cues as oil prices tumbled and trade negotiations between China and the U.S. deteriorated.
The latest batch of earnings results and uncertainty arising out of the ongoing general elections may also weigh on markets as voting began for the fifth phase of Lok Sabha elections.
Asian stocks plummeted, safe-haven assets strengthened and oil prices fell more than 2 percent after U.S. President Donald Trump sharply escalated trade tensions between the world’s two largest economies.
Trump tweeted on Sunday that talks toward a trade deal with China were proceeding “too slowly”, and that he would raise tariffs on USD 200 billion of goods to 25 percent on Friday from 10 percent.
Trump also added that would target a further USD 325 billion of Chinese goods with 25 percent tariffs “shortly.
Elsewhere in the U.S., stocks rallied on Friday as investors cheered a solid jobs report as well as surprisingly good earnings from a slew of companies.
The Dow rose 0.8 percent and the S&P 500 gained 1 percent while the tech-heavy Nasdaq Composite surged 1.6 percent to reach a fresh record closing high.
The Labor Department’s report showed that non-farm payroll employment surged up by 263,000 jobs in April following a downwardly revised increase of 189,000 jobs in March. Economists had expected employment to climb by 185,000 jobs.
The jobless rate fell to 3.6 percent in April from 3.8 percent in March, while economists had expected the rate to remain unchanged.
European markets ended higher on Friday as investors reacted positively to earnings updates from banks and upbeat U.S. jobs data.
The pan European Stoxx 600 gained 0.4 percent. The German DAX advanced 0.6 percent, France’s CAC 40 index inched up 0.2 percent and the U.K.’s FTSE 100